Correlation Between Acri Capital and CF Acquisition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Acri Capital and CF 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 Acri Capital and CF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acri Capital Acquisition and CF Acquisition VII, you can compare the effects of market volatilities on Acri Capital and CF 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 Acri Capital with a short position of CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acri Capital and CF Acquisition.

Diversification Opportunities for Acri Capital and CF Acquisition

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Acri and CFFS is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Acri Capital Acquisition and CF Acquisition VII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition VII and Acri Capital 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 Acri Capital Acquisition are associated (or correlated) with CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition VII has no effect on the direction of Acri Capital i.e., Acri Capital and CF Acquisition go up and down completely randomly.

Pair Corralation between Acri Capital and CF Acquisition

If you would invest  1,110  in CF Acquisition VII on September 5, 2024 and sell it today you would earn a total of  15.00  from holding CF Acquisition VII or generate 1.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Acri Capital Acquisition  vs.  CF Acquisition VII

 Performance 
       Timeline  
Acri Capital Acquisition 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Acri Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Acri Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
CF Acquisition VII 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in CF Acquisition VII are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, CF Acquisition is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Acri Capital and CF Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acri Capital and CF Acquisition

The main advantage of trading using opposite Acri Capital and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acri Capital position performs unexpectedly, CF 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.
The idea behind Acri Capital Acquisition and CF Acquisition VII 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets