Correlation Between Senior Connect and Frontier Investment
Can any of the company-specific risk be diversified away by investing in both Senior Connect and Frontier Investment 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 Senior Connect and Frontier Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senior Connect Acquisition and Frontier Investment Corp, you can compare the effects of market volatilities on Senior Connect and Frontier Investment 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 Senior Connect with a short position of Frontier Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senior Connect and Frontier Investment.
Diversification Opportunities for Senior Connect and Frontier Investment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Senior and Frontier is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Senior Connect Acquisition and Frontier Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Investment Corp and Senior Connect 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 Senior Connect Acquisition are associated (or correlated) with Frontier Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Investment Corp has no effect on the direction of Senior Connect i.e., Senior Connect and Frontier Investment go up and down completely randomly.
Pair Corralation between Senior Connect and Frontier Investment
If you would invest 1,050 in Frontier Investment Corp on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Frontier Investment Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senior Connect Acquisition vs. Frontier Investment Corp
Performance |
| Timeline |
| Senior Connect Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Frontier Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Senior Connect and Frontier Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senior Connect and Frontier Investment
The main advantage of trading using opposite Senior Connect and Frontier Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senior Connect position performs unexpectedly, Frontier Investment 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 Frontier Investment will offset losses from the drop in Frontier Investment's long position.| Senior Connect vs. IX Acquisition Corp | Senior Connect vs. LatAmGrowth SPAC | Senior Connect vs. Portage Fintech Acquisition | Senior Connect vs. Swiftmerge Acquisition Corp |
| Frontier Investment vs. Mars Acquisition Corp | Frontier Investment vs. AlphaTime Acquisition Corp | Frontier Investment vs. BurTech Acquisition Corp | Frontier Investment vs. Manaris Corp |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |