Correlation Between HCM Acquisition and FACT II
Can any of the company-specific risk be diversified away by investing in both HCM Acquisition and FACT II 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 HCM Acquisition and FACT II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCM Acquisition Corp and FACT II Acquisition, you can compare the effects of market volatilities on HCM Acquisition and FACT II 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 HCM Acquisition with a short position of FACT II. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCM Acquisition and FACT II.
Diversification Opportunities for HCM Acquisition and FACT II
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HCM and FACT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HCM Acquisition Corp and FACT II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FACT II Acquisition and HCM 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 HCM Acquisition Corp are associated (or correlated) with FACT II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FACT II Acquisition has no effect on the direction of HCM Acquisition i.e., HCM Acquisition and FACT II go up and down completely randomly.
Pair Corralation between HCM Acquisition and FACT II
If you would invest 1,029 in FACT II Acquisition on September 8, 2025 and sell it today you would earn a total of 8.00 from holding FACT II Acquisition or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HCM Acquisition Corp vs. FACT II Acquisition
Performance |
| Timeline |
| HCM Acquisition Corp |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| FACT II Acquisition |
HCM Acquisition and FACT II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCM Acquisition and FACT II
The main advantage of trading using opposite HCM Acquisition and FACT II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCM Acquisition position performs unexpectedly, FACT II 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 FACT II will offset losses from the drop in FACT II's long position.| HCM Acquisition vs. Dune Acquisition | HCM Acquisition vs. GCL Global Holdings | HCM Acquisition vs. Spring Valley Acquisition | HCM Acquisition vs. IB Acquisition Corp |
| FACT II vs. Translational Development Acquisition | FACT II vs. Melar Acquisition Corp | FACT II vs. Legato Merger Corp | FACT II vs. Perimeter Acquisition Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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