Correlation Between WESTERN ACQUISITION and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both WESTERN 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 WESTERN 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 WESTERN ACQUISITION VENTURES and FTAC Emerald Acquisition, you can compare the effects of market volatilities on WESTERN 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 WESTERN ACQUISITION with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTERN ACQUISITION and FTAC Emerald.
Diversification Opportunities for WESTERN ACQUISITION and FTAC Emerald
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WESTERN and FTAC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding WESTERN ACQUISITION VENTURES 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 WESTERN 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 WESTERN ACQUISITION VENTURES 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 WESTERN ACQUISITION i.e., WESTERN ACQUISITION and FTAC Emerald go up and down completely randomly.
Pair Corralation between WESTERN ACQUISITION and FTAC Emerald
If you would invest 1,100 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 100.00 from holding FTAC Emerald Acquisition or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
WESTERN ACQUISITION VENTURES vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| WESTERN ACQUISITION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAC Emerald Acquisition |
WESTERN ACQUISITION and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESTERN ACQUISITION and FTAC Emerald
The main advantage of trading using opposite WESTERN ACQUISITION and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTERN 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.| WESTERN ACQUISITION vs. PowerUp Acquisition Corp | WESTERN ACQUISITION vs. HUMANA INC | WESTERN ACQUISITION vs. Aquagold International | WESTERN ACQUISITION vs. Barloworld Ltd ADR |
| FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. YHN Acquisition I | FTAC Emerald vs. CO2 Energy Transition | FTAC Emerald vs. Vine Hill Capital |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |