Correlation Between International Media and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both International Media and FTAC Emerald 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 International Media and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Media Acquisition and FTAC Emerald Acquisition, you can compare the effects of market volatilities on International Media and FTAC Emerald 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 International Media with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and FTAC Emerald.
Diversification Opportunities for International Media and FTAC Emerald
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and FTAC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition and International Media 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 International Media Acquisition are associated (or correlated) with FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of International Media i.e., International Media and FTAC Emerald go up and down completely randomly.
Pair Corralation between International Media and FTAC Emerald
If you would invest 1,090 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 27.00 from holding FTAC Emerald Acquisition or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Media Acquisitio vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAC Emerald Acquisition |
International Media and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and FTAC Emerald
The main advantage of trading using opposite International Media and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| International Media vs. Plexus Corp | International Media vs. Sweetgreen | International Media vs. Mind Technology | International Media vs. The Cheesecake Factory |
| FTAC Emerald vs. HF Sinclair Corp | FTAC Emerald vs. Qualys Inc | FTAC Emerald vs. NetSol Technologies | FTAC Emerald vs. Cebu Air ADR |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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