Correlation Between Innovative International and FG Merger
Can any of the company-specific risk be diversified away by investing in both Innovative International and FG Merger 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 Innovative International and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative International Acquisition and FG Merger Corp, you can compare the effects of market volatilities on Innovative International and FG Merger 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 Innovative International with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative International and FG Merger.
Diversification Opportunities for Innovative International and FG Merger
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Innovative and FGMC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Innovative International Acqui and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger Corp and Innovative International 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 Innovative International Acquisition are associated (or correlated) with FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of Innovative International i.e., Innovative International and FG Merger go up and down completely randomly.
Pair Corralation between Innovative International and FG Merger
If you would invest 1,062 in FG Merger Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FG Merger Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative International Acqui vs. FG Merger Corp
Performance |
| Timeline |
| Innovative International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Innovative International and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative International and FG Merger
The main advantage of trading using opposite Innovative International and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative International position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger's long position.| Innovative International vs. Global Ship Lease | Innovative International vs. Direct Line Insurance | Innovative International vs. Trupanion | Innovative International vs. Assurant |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |