Correlation Between Berenson Acquisition and Athena Technology

Can any of the company-specific risk be diversified away by investing in both Berenson Acquisition and Athena Technology 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 Berenson Acquisition and Athena Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Berenson Acquisition Corp and Athena Technology Acquisition, you can compare the effects of market volatilities on Berenson Acquisition and Athena Technology 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 Berenson Acquisition with a short position of Athena Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berenson Acquisition and Athena Technology.

Diversification Opportunities for Berenson Acquisition and Athena Technology

-0.23

Correlation Coefficient

Berenson Acquisition  Athena Technology

Very good diversification

The 3 months correlation between Berenson and Athena is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Berenson Acquisition Corp and Athena Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Technology and Berenson 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 Berenson Acquisition Corp are associated (or correlated) with Athena Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Technology has no effect on the direction of Berenson Acquisition i.e., Berenson Acquisition and Athena Technology go up and down completely randomly.

Pair Corralation between Berenson Acquisition and Athena Technology

If you would invest  1,064  in Berenson Acquisition Corp on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Berenson Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Berenson Acquisition Corp  vs.  Athena Technology Acquisition

Berenson Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days Berenson Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak fundamental indicators, Berenson Acquisition may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Athena Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athena Technology Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Berenson Acquisition and Athena Technology

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

The idea behind Berenson Acquisition Corp and Athena Technology 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.