Correlation Between InFintT Acquisition and Associated Capital
Can any of the company-specific risk be diversified away by investing in both InFintT Acquisition and Associated Capital 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 InFintT Acquisition and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InFintT Acquisition Corp and Associated Capital Group, you can compare the effects of market volatilities on InFintT Acquisition and Associated Capital 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 InFintT Acquisition with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of InFintT Acquisition and Associated Capital.
Diversification Opportunities for InFintT Acquisition and Associated Capital
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InFintT and Associated is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding InFintT Acquisition Corp and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and InFintT 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 InFintT Acquisition Corp are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of InFintT Acquisition i.e., InFintT Acquisition and Associated Capital go up and down completely randomly.
Pair Corralation between InFintT Acquisition and Associated Capital
Given the investment horizon of 90 days InFintT Acquisition is expected to generate 13.85 times less return on investment than Associated Capital. But when comparing it to its historical volatility, InFintT Acquisition Corp is 15.24 times less risky than Associated Capital. It trades about 0.21 of its potential returns per unit of risk. Associated Capital Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,272 in Associated Capital Group on February 23, 2024 and sell it today you would earn a total of 164.00 from holding Associated Capital Group or generate 5.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
InFintT Acquisition Corp vs. Associated Capital Group
Performance |
Timeline |
InFintT Acquisition Corp |
Associated Capital |
InFintT Acquisition and Associated Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with InFintT Acquisition and Associated Capital
The main advantage of trading using opposite InFintT Acquisition and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InFintT Acquisition position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.InFintT Acquisition vs. TenX Keane Acquisition | InFintT Acquisition vs. Manaris Corp | InFintT Acquisition vs. HUMANA INC | InFintT Acquisition vs. SCOR PK |
Associated Capital vs. Federated Premier Municipal | Associated Capital vs. Blackrock Muniyield | Associated Capital vs. NXG NextGen Infrastructure | Associated Capital vs. Federated Investors B |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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