Correlation Between Voyager Acquisition and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Voyager Acquisition and FTAC Emerald 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 Voyager Acquisition and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voyager Acquisition Corp and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Voyager Acquisition and FTAC Emerald 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 Voyager Acquisition with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voyager Acquisition and FTAC Emerald.
Diversification Opportunities for Voyager Acquisition and FTAC Emerald
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voyager and FTAC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Acquisition Corp and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition and Voyager 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 Voyager Acquisition Corp are associated (or correlated) with FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Voyager Acquisition i.e., Voyager Acquisition and FTAC Emerald go up and down completely randomly.
Pair Corralation between Voyager Acquisition and FTAC Emerald
Given the investment horizon of 90 days Voyager Acquisition is expected to generate 466.91 times less return on investment than FTAC Emerald. But when comparing it to its historical volatility, Voyager Acquisition Corp is 211.21 times less risky than FTAC Emerald. It trades about 0.07 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7.99 in FTAC Emerald Acquisition on September 3, 2024 and sell it today you would earn a total of 62.01 from holding FTAC Emerald Acquisition or generate 776.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 42.45% |
| Values | Daily Returns |
Voyager Acquisition Corp vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| Voyager Acquisition Corp |
| FTAC Emerald Acquisition |
Voyager Acquisition and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voyager Acquisition and FTAC Emerald
The main advantage of trading using opposite Voyager Acquisition and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voyager Acquisition position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| Voyager Acquisition vs. RBC Bearings Incorporated | Voyager Acquisition vs. Parker Hannifin | Voyager Acquisition vs. Toro Co | Voyager Acquisition vs. Bausch Lomb Corp |
| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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