Correlation Between FTAC Zeus and ExcelFin Acquisition
Can any of the company-specific risk be diversified away by investing in both FTAC Zeus and ExcelFin 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 FTAC Zeus and ExcelFin Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAC Zeus Acquisition and ExcelFin Acquisition Corp, you can compare the effects of market volatilities on FTAC Zeus and ExcelFin 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 FTAC Zeus with a short position of ExcelFin Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Zeus and ExcelFin Acquisition.
Diversification Opportunities for FTAC Zeus and ExcelFin Acquisition
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FTAC and ExcelFin is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Zeus Acquisition and ExcelFin Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExcelFin Acquisition Corp and FTAC Zeus 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 FTAC Zeus Acquisition are associated (or correlated) with ExcelFin Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExcelFin Acquisition Corp has no effect on the direction of FTAC Zeus i.e., FTAC Zeus and ExcelFin Acquisition go up and down completely randomly.
Pair Corralation between FTAC Zeus and ExcelFin Acquisition
If you would invest 4.00 in ExcelFin Acquisition Corp on November 2, 2024 and sell it today you would earn a total of 3.00 from holding ExcelFin Acquisition Corp or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 7.14% |
| Values | Daily Returns |
FTAC Zeus Acquisition vs. ExcelFin Acquisition Corp
Performance |
| Timeline |
| FTAC Zeus Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ExcelFin Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FTAC Zeus and ExcelFin Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Zeus and ExcelFin Acquisition
The main advantage of trading using opposite FTAC Zeus and ExcelFin Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Zeus position performs unexpectedly, ExcelFin 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 ExcelFin Acquisition will offset losses from the drop in ExcelFin Acquisition's long position.The idea behind FTAC Zeus Acquisition and ExcelFin 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.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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