Correlation Between RF Acquisition and Cannae Holdings
Can any of the company-specific risk be diversified away by investing in both RF Acquisition and Cannae Holdings 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 RF Acquisition and Cannae Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RF Acquisition Corp and Cannae Holdings, you can compare the effects of market volatilities on RF Acquisition and Cannae Holdings 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 RF Acquisition with a short position of Cannae Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of RF Acquisition and Cannae Holdings.
Diversification Opportunities for RF Acquisition and Cannae Holdings
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between RFACR and Cannae is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding RF Acquisition Corp and Cannae Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannae Holdings and RF 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 RF Acquisition Corp are associated (or correlated) with Cannae Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannae Holdings has no effect on the direction of RF Acquisition i.e., RF Acquisition and Cannae Holdings go up and down completely randomly.
Pair Corralation between RF Acquisition and Cannae Holdings
If you would invest 1,920 in Cannae Holdings on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Cannae Holdings or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
RF Acquisition Corp vs. Cannae Holdings
Performance |
| Timeline |
| RF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cannae Holdings |
RF Acquisition and Cannae Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RF Acquisition and Cannae Holdings
The main advantage of trading using opposite RF Acquisition and Cannae Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RF Acquisition position performs unexpectedly, Cannae Holdings 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 Cannae Holdings will offset losses from the drop in Cannae Holdings' long position.| RF Acquisition vs. Cannae Holdings | RF Acquisition vs. Chipotle Mexican Grill | RF Acquisition vs. Dine Brands Global | RF Acquisition vs. Shake Shack |
| Cannae Holdings vs. Brightsphere Investment Group | Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |