Correlation Between Westshore Terminals and FG Acquisition
Can any of the company-specific risk be diversified away by investing in both Westshore Terminals and FG 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 Westshore Terminals and FG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westshore Terminals Investment and FG Acquisition Corp, you can compare the effects of market volatilities on Westshore Terminals and FG 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 Westshore Terminals with a short position of FG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westshore Terminals and FG Acquisition.
Diversification Opportunities for Westshore Terminals and FG Acquisition
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Westshore and FGAA-U is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Westshore Terminals Investment and FG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Acquisition Corp and Westshore Terminals 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 Westshore Terminals Investment are associated (or correlated) with FG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Acquisition Corp has no effect on the direction of Westshore Terminals i.e., Westshore Terminals and FG Acquisition go up and down completely randomly.
Pair Corralation between Westshore Terminals and FG Acquisition
If you would invest 1,178 in FG Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding FG Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
Westshore Terminals Investment vs. FG Acquisition Corp
Performance |
| Timeline |
| Westshore Terminals |
| FG Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Westshore Terminals and FG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westshore Terminals and FG Acquisition
The main advantage of trading using opposite Westshore Terminals and FG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westshore Terminals position performs unexpectedly, FG 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 FG Acquisition will offset losses from the drop in FG Acquisition's long position.| Westshore Terminals vs. Mullen Group | Westshore Terminals vs. Ritchie Bros Auctioneers | Westshore Terminals vs. Winpak | Westshore Terminals vs. North West |
| FG Acquisition vs. Electra Battery Materials | FG Acquisition vs. A W FOOD | FG Acquisition vs. Canso Credit Trust | FG Acquisition vs. NextSource Materials |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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