Correlation Between NYSE Composite and FAST Acquisition
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and FAST Acquisition 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 FAST Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and FAST Acquisition II, you can compare the effects of market volatilities on NYSE Composite and FAST Acquisition 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 FAST Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and FAST Acquisition.
Diversification Opportunities for NYSE Composite and FAST Acquisition
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and FAST is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and FAST Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST Acquisition 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 FAST Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST Acquisition has no effect on the direction of NYSE Composite i.e., NYSE Composite and FAST Acquisition go up and down completely randomly.
Pair Corralation between NYSE Composite and FAST Acquisition
If you would invest 1,901,742 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 125,462 from holding NYSE Composite or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.56% |
| Values | Daily Returns |
NYSE Composite vs. FAST Acquisition II
Performance |
| Timeline |
NYSE Composite and FAST Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
FAST Acquisition II
Pair trading matchups for FAST Acquisition
Pair Trading with NYSE Composite and FAST Acquisition
The main advantage of trading using opposite NYSE Composite and FAST Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, FAST Acquisition 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 FAST Acquisition will offset losses from the drop in FAST Acquisition's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| FAST Acquisition vs. A SPAC II | FAST Acquisition vs. Athena Technology Acquisition | FAST Acquisition vs. Oak Woods Acquisition | FAST Acquisition vs. Hudson 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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