Correlation Between Bannix Acquisition and Bleuacacia

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

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

Diversification Opportunities for Bannix Acquisition and Bleuacacia

0.0

Correlation Coefficient

Bannix Acquisition  Bleuacacia

Pay attention - limited upside

The 3 months correlation between Bannix and Bleuacacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bannix Acquisition Corp and Bleuacacia Ltd Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bleuacacia Warrants and Bannix 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 Bannix Acquisition Corp are associated (or correlated) with Bleuacacia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bleuacacia Warrants has no effect on the direction of Bannix Acquisition i.e., Bannix Acquisition and Bleuacacia go up and down completely randomly.

Pair Corralation between Bannix Acquisition and Bleuacacia

If you would invest  7.50  in Bannix Acquisition Corp on October 11, 2024 and sell it today you would earn a total of  1.82  from holding Bannix Acquisition Corp or generate 24.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	8.33%
Values	Daily Returns

Bannix Acquisition Corp  vs.  Bleuacacia Ltd Warrants

Bannix Acquisition Corp

Risk-Adjusted Performance

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Weak

Over the last 90 days Bannix Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively abnormal basic indicators, Bannix Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Bleuacacia Warrants

Risk-Adjusted Performance

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Solid

Over the last 90 days Bleuacacia Ltd Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal basic indicators, Bleuacacia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bannix Acquisition and Bleuacacia

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

The idea behind Bannix Acquisition Corp and Bleuacacia Ltd Warrants 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.