Correlation Between Integral Acquisition and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Integral Acquisition 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 Integral Acquisition and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Acquisition 1 and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Integral Acquisition 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 Integral Acquisition with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral Acquisition and FTAC Emerald.
Diversification Opportunities for Integral Acquisition and FTAC Emerald
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integral and FTAC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Integral Acquisition 1 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 Integral 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 Integral Acquisition 1 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 Integral Acquisition i.e., Integral Acquisition and FTAC Emerald go up and down completely randomly.
Pair Corralation between Integral Acquisition and FTAC Emerald
Assuming the 90 days horizon Integral Acquisition 1 is expected to under-perform the FTAC Emerald. In addition to that, Integral Acquisition is 2.39 times more volatile than FTAC Emerald Acquisition. It trades about -0.32 of its total potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.33 per unit of volatility. If you would invest 1,090 in FTAC Emerald Acquisition on August 30, 2024 and sell it today you would earn a total of 110.00 from holding FTAC Emerald Acquisition or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Integral Acquisition 1 vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| Integral Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAC Emerald Acquisition |
Integral Acquisition and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral Acquisition and FTAC Emerald
The main advantage of trading using opposite Integral Acquisition and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral Acquisition 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.The idea behind Integral Acquisition 1 and FTAC Emerald Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN Acquisition I |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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