Correlation Between Bank Central and Ftac Zeus

Can any of the company-specific risk be diversified away by investing in both Bank Central and Ftac Zeus 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 Bank Central and Ftac Zeus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bank Central Asia and Ftac Zeus Acquisition, you can compare the effects of market volatilities on Bank Central and Ftac Zeus 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 Bank Central with a short position of Ftac Zeus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Ftac Zeus.

Diversification Opportunities for Bank Central and Ftac Zeus

-0.7

Correlation Coefficient

Bank Central  Ftac Zeus

Excellent diversification

The 3 months correlation between Bank and Ftac is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Ftac Zeus Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftac Zeus Acquisition and Bank Central 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 Bank Central Asia are associated (or correlated) with Ftac Zeus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftac Zeus Acquisition has no effect on the direction of Bank Central i.e., Bank Central and Ftac Zeus go up and down completely randomly.

Pair Corralation between Bank Central and Ftac Zeus

Assuming the 90 days horizon Bank Central Asia is expected to generate 2.61 times more return on investment than Ftac Zeus. However, Bank Central is 2.61 times more volatile than Ftac Zeus Acquisition. It trades about 0.03 of its potential returns per unit of risk. Ftac Zeus Acquisition is currently generating about 0.04 per unit of risk. If you would invest  1,313  in Bank Central Asia on September 18, 2024 and sell it today you would earn a total of  259.00  from holding Bank Central Asia or generate 19.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	28.89%
Values	Daily Returns

Bank Central Asia  vs.  Ftac Zeus Acquisition

Bank Central Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bank Central Asia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ftac Zeus Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ftac Zeus Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Ftac Zeus is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bank Central and Ftac Zeus

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

The idea behind Bank Central Asia and Ftac Zeus Acquisition 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.