Correlation Between RF Acquisition and Bannix Acquisition
Can any of the company-specific risk be diversified away by investing in both RF Acquisition and Bannix 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 RF Acquisition and Bannix Acquisition 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 Bannix Acquisition Corp, you can compare the effects of market volatilities on RF Acquisition and Bannix 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 RF Acquisition with a short position of Bannix Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of RF Acquisition and Bannix Acquisition.
Diversification Opportunities for RF Acquisition and Bannix Acquisition
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between RFACW and Bannix is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding RF Acquisition Corp and Bannix Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bannix Acquisition Corp 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 Bannix Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bannix Acquisition Corp has no effect on the direction of RF Acquisition i.e., RF Acquisition and Bannix Acquisition go up and down completely randomly.
Pair Corralation between RF Acquisition and Bannix Acquisition
Assuming the 90 days horizon RF Acquisition Corp is expected to generate 1.53 times more return on investment than Bannix Acquisition. However, RF Acquisition is 1.53 times more volatile than Bannix Acquisition Corp. It trades about 0.19 of its potential returns per unit of risk. Bannix Acquisition Corp is currently generating about 0.13 per unit of risk. If you would invest 1.06 in RF Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 1.38 from holding RF Acquisition Corp or generate 130.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.22% |
| Values | Daily Returns |
RF Acquisition Corp vs. Bannix Acquisition Corp
Performance |
| Timeline |
| RF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bannix Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
RF Acquisition and Bannix Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RF Acquisition and Bannix Acquisition
The main advantage of trading using opposite RF Acquisition and Bannix Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RF Acquisition position performs unexpectedly, Bannix 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 Bannix Acquisition will offset losses from the drop in Bannix Acquisition's long position.The idea behind RF Acquisition Corp and Bannix Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bannix Acquisition vs. Where Food Comes | Bannix Acquisition vs. Q2 Holdings | Bannix Acquisition vs. Trupanion | Bannix Acquisition vs. NI Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |