Correlation Between BurTech Acquisition and AlphaTime Acquisition

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

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

Diversification Opportunities for BurTech Acquisition and AlphaTime Acquisition

0.0

Correlation Coefficient

BurTech Acquisition  AlphaTime Acquisition

Pay attention - limited upside

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

Pair Corralation between BurTech Acquisition and AlphaTime Acquisition

If you would invest  14.00  in AlphaTime Acquisition Corp on December 28, 2024 and sell it today you would earn a total of  2.00  from holding AlphaTime Acquisition Corp or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BurTech Acquisition Corp  vs.  AlphaTime Acquisition Corp

BurTech Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days BurTech Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, BurTech Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

AlphaTime Acquisition

Risk-Adjusted Performance

OK

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

Pair Trading with BurTech Acquisition and AlphaTime Acquisition

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

The idea behind BurTech Acquisition Corp and AlphaTime Acquisition Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.