Correlation Between NYSE Composite and FG Merger
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and FG Merger Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and FG Merger.
Diversification Opportunities for NYSE Composite and FG Merger
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and FGMC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and FG Merger go up and down completely randomly.
Pair Corralation between NYSE Composite and FG Merger
If you would invest 1,920,711 in NYSE Composite on October 22, 2024 and sell it today you would earn a total of 40,026 from holding NYSE Composite or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
NYSE Composite vs. FG Merger Corp
Performance |
| Timeline |
NYSE Composite and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
FG Merger Corp
Pair trading matchups for FG Merger
Pair Trading with NYSE Composite and FG Merger
The main advantage of trading using opposite NYSE Composite and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Kenon Holdings | NYSE Composite vs. Procter Gamble | NYSE Composite vs. Broadcom | NYSE Composite vs. Nike Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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