Correlation Between Flag Ship and A SPAC

Can any of the company-specific risk be diversified away by investing in both Flag Ship and A SPAC 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 Flag Ship and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flag Ship Acquisition and A SPAC III, you can compare the effects of market volatilities on Flag Ship and A SPAC 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 Flag Ship with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flag Ship and A SPAC.

Diversification Opportunities for Flag Ship and A SPAC

0.65

Correlation Coefficient

Flag Ship  A SPAC

Poor diversification

The 3 months correlation between Flag and ASPC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Flag Ship Acquisition and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III and Flag Ship 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 Flag Ship Acquisition are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Flag Ship i.e., Flag Ship and A SPAC go up and down completely randomly.

Pair Corralation between Flag Ship and A SPAC

Given the investment horizon of 90 days Flag Ship is expected to generate 5.18 times less return on investment than A SPAC. But when comparing it to its historical volatility, Flag Ship Acquisition is 3.23 times less risky than A SPAC. It trades about 0.06 of its potential returns per unit of risk. A SPAC III is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,029  in A SPAC III on August 18, 2025 and sell it today you would earn a total of  76.00  from holding A SPAC III or generate 7.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Flag Ship Acquisition  vs.  A SPAC III

Flag Ship Acquisition

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Flag Ship Acquisition are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical indicators, Flag Ship is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, A SPAC may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Flag Ship and A SPAC

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

The idea behind Flag Ship Acquisition and A SPAC III 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..