Correlation Between FTAC Emerald and Bukit Jalil

Can any of the company-specific risk be diversified away by investing in both FTAC Emerald and Bukit Jalil 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 Emerald and Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FTAC Emerald Acquisition and Bukit Jalil Global, you can compare the effects of market volatilities on FTAC Emerald and Bukit Jalil 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 Emerald with a short position of Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and Bukit Jalil.

Diversification Opportunities for FTAC Emerald and Bukit Jalil

-0.58

Correlation Coefficient

FTAC Emerald  Bukit Jalil

Excellent diversification

The 3 months correlation between FTAC and Bukit is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global and FTAC Emerald 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 Emerald Acquisition are associated (or correlated) with Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of FTAC Emerald i.e., FTAC Emerald and Bukit Jalil go up and down completely randomly.

Pair Corralation between FTAC Emerald and Bukit Jalil

Considering the 90-day investment horizon FTAC Emerald Acquisition is expected to generate 0.03 times more return on investment than Bukit Jalil. However, FTAC Emerald Acquisition is 28.7 times less risky than Bukit Jalil. It trades about 0.1 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about -0.13 per unit of risk. If you would invest  1,083  in FTAC Emerald Acquisition on September 5, 2024 and sell it today you would earn a total of  32.00  from holding FTAC Emerald Acquisition or generate 2.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	25.0%
Values	Daily Returns

FTAC Emerald Acquisition  vs.  Bukit Jalil Global

FTAC Emerald Acquisition

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FTAC Emerald Acquisition are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, FTAC Emerald is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Bukit Jalil Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bukit Jalil Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with FTAC Emerald and Bukit Jalil

The main advantage of trading using opposite FTAC Emerald and Bukit Jalil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald position performs unexpectedly, Bukit Jalil 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 Bukit Jalil will offset losses from the drop in Bukit Jalil's long position.

The idea behind FTAC Emerald Acquisition and Bukit Jalil Global 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.

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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.