Correlation Between Hawks Acquisition and Finnovate Acquisition
Can any of the company-specific risk be diversified away by investing in both Hawks Acquisition and Finnovate Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hawks Acquisition and Finnovate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawks Acquisition Corp and Finnovate Acquisition Corp, you can compare the effects of market volatilities on Hawks Acquisition and Finnovate Acquisition and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hawks Acquisition with a short position of Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawks Acquisition and Finnovate Acquisition.
Diversification Opportunities for Hawks Acquisition and Finnovate Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hawks and Finnovate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hawks Acquisition Corp and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate Acquisition and Hawks Acquisition is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hawks Acquisition Corp are associated (or correlated) with Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of Hawks Acquisition i.e., Hawks Acquisition and Finnovate Acquisition go up and down completely randomly.
Pair Corralation between Hawks Acquisition and Finnovate Acquisition
If you would invest 1,116 in Finnovate Acquisition Corp on November 5, 2024 and sell it today you would earn a total of 46.00 from holding Finnovate Acquisition Corp or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.43% |
| Values | Daily Returns |
Hawks Acquisition Corp vs. Finnovate Acquisition Corp
Performance |
| Timeline |
| Hawks Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Finnovate Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hawks Acquisition and Finnovate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawks Acquisition and Finnovate Acquisition
The main advantage of trading using opposite Hawks Acquisition and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawks Acquisition position performs unexpectedly, Finnovate Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.| Hawks Acquisition vs. International Luxury Products | Hawks Acquisition vs. Cactus Acquisition Corp | Hawks Acquisition vs. Global Blockchain Acquisition | Hawks Acquisition vs. Metal Sky Star |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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