Correlation Between Knightswan Acquisition and FG Merger
Can any of the company-specific risk be diversified away by investing in both Knightswan Acquisition 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 Knightswan Acquisition and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightswan Acquisition Corp and FG Merger Corp, you can compare the effects of market volatilities on Knightswan Acquisition 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 Knightswan Acquisition with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightswan Acquisition and FG Merger.
Diversification Opportunities for Knightswan Acquisition and FG Merger
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Knightswan and FGMCW is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Knightswan Acquisition Corp 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 Knightswan 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 Knightswan Acquisition Corp 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 Knightswan Acquisition i.e., Knightswan Acquisition and FG Merger go up and down completely randomly.
Pair Corralation between Knightswan Acquisition and FG Merger
If you would invest 10.00 in FG Merger Corp on November 2, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knightswan Acquisition Corp vs. FG Merger Corp
Performance |
| Timeline |
| Knightswan Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Knightswan Acquisition and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightswan Acquisition and FG Merger
The main advantage of trading using opposite Knightswan Acquisition and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightswan Acquisition 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.| Knightswan Acquisition vs. Everest Consolidator Acquisition | Knightswan Acquisition vs. PowerUp Acquisition Corp |
| FG Merger vs. Molson Coors Brewing | FG Merger vs. Ambev SA ADR | FG Merger vs. Universal | FG Merger vs. Cardinal Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |