Correlation Between Oak Woods and FAST Acquisition
Can any of the company-specific risk be diversified away by investing in both Oak Woods 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 Oak Woods and FAST Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oak Woods Acquisition and FAST Acquisition II, you can compare the effects of market volatilities on Oak Woods 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 Oak Woods with a short position of FAST Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Woods and FAST Acquisition.
Diversification Opportunities for Oak Woods and FAST Acquisition
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oak and FAST is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oak Woods Acquisition and FAST Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST Acquisition and Oak Woods 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 Oak Woods Acquisition 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 Oak Woods i.e., Oak Woods and FAST Acquisition go up and down completely randomly.
Pair Corralation between Oak Woods and FAST Acquisition
If you would invest 1,138 in Oak Woods Acquisition on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Oak Woods Acquisition or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Oak Woods Acquisition vs. FAST Acquisition II
Performance |
| Timeline |
| Oak Woods Acquisition |
| FAST Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oak Woods and FAST Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Woods and FAST Acquisition
The main advantage of trading using opposite Oak Woods and FAST Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Woods 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.| Oak Woods vs. Timken Company | Oak Woods vs. Estee Lauder Companies | Oak Woods vs. Eastern Co | Oak Woods vs. Valneva SE ADR |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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