Correlation Between Bayview Acquisition and Cohen Circle

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

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

Diversification Opportunities for Bayview Acquisition and Cohen Circle

-0.55

Correlation Coefficient

Bayview Acquisition  Cohen Circle

Excellent diversification

The 3 months correlation between Bayview and Cohen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition and Bayview 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 Bayview Acquisition Corp are associated (or correlated) with Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and Cohen Circle go up and down completely randomly.

Pair Corralation between Bayview Acquisition and Cohen Circle

Assuming the 90 days horizon Bayview Acquisition Corp is expected to generate 15.91 times more return on investment than Cohen Circle. However, Bayview Acquisition is 15.91 times more volatile than Cohen Circle Acquisition. It trades about 0.19 of its potential returns per unit of risk. Cohen Circle Acquisition is currently generating about 0.1 per unit of risk. If you would invest  13.00  in Bayview Acquisition Corp on October 8, 2024 and sell it today you would earn a total of  1.00  from holding Bayview Acquisition Corp or generate 7.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	36.84%
Values	Daily Returns

Bayview Acquisition Corp  vs.  Cohen Circle Acquisition

Bayview Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cohen Circle Acquisition

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Circle Acquisition are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cohen Circle 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 Bayview Acquisition and Cohen Circle

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

The idea behind Bayview Acquisition Corp and Cohen Circle 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.