Correlation Between Investcorp Europe and FG Merger
Can any of the company-specific risk be diversified away by investing in both Investcorp Europe 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 Investcorp Europe and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Europe Acquisition and FG Merger Corp, you can compare the effects of market volatilities on Investcorp Europe 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 Investcorp Europe with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Europe and FG Merger.
Diversification Opportunities for Investcorp Europe and FG Merger
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investcorp and FGMCW is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Europe Acquisition 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 Investcorp Europe 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 Investcorp Europe 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 Investcorp Europe i.e., Investcorp Europe and FG Merger go up and down completely randomly.
Pair Corralation between Investcorp Europe and FG Merger
If you would invest 1,148 in Investcorp Europe Acquisition on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Investcorp Europe Acquisition or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Investcorp Europe Acquisition vs. FG Merger Corp
Performance |
| Timeline |
| Investcorp Europe |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Investcorp Europe and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Europe and FG Merger
The main advantage of trading using opposite Investcorp Europe and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Europe 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.| Investcorp Europe vs. Bellevue Life Sciences | Investcorp Europe vs. Manaris Corp | Investcorp Europe vs. Metal Sky Star | Investcorp Europe vs. Gores Holdings IX |
| FG Merger vs. Mativ Holdings | FG Merger vs. GEN Restaurant Group, | FG Merger vs. Sweetgreen | FG Merger vs. Dalata Hotel Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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