Correlation Between BurTech Acquisition and Swiftmerge Acquisition
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Swiftmerge 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 Swiftmerge 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 Swiftmerge Acquisition Corp, you can compare the effects of market volatilities on BurTech Acquisition and Swiftmerge 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 Swiftmerge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Swiftmerge Acquisition.
Diversification Opportunities for BurTech Acquisition and Swiftmerge Acquisition
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BurTech and Swiftmerge is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge 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 Swiftmerge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiftmerge Acquisition has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Swiftmerge Acquisition go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Swiftmerge Acquisition
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 40.28 times more return on investment than Swiftmerge Acquisition. However, BurTech Acquisition is 40.28 times more volatile than Swiftmerge Acquisition Corp. It trades about 0.04 of its potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about 0.01 per unit of risk. If you would invest 1,027 in BurTech Acquisition Corp on September 26, 2024 and sell it today you would earn a total of 373.00 from holding BurTech Acquisition Corp or generate 36.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.79% |
Values | Daily Returns |
BurTech Acquisition Corp vs. Swiftmerge Acquisition Corp
Performance |
Timeline |
BurTech Acquisition Corp |
Swiftmerge Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BurTech Acquisition and Swiftmerge Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BurTech Acquisition and Swiftmerge Acquisition
The main advantage of trading using opposite BurTech Acquisition and Swiftmerge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Swiftmerge 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 Swiftmerge Acquisition will offset losses from the drop in Swiftmerge Acquisition's long position.BurTech Acquisition vs. Aquagold International | BurTech Acquisition vs. Morningstar Unconstrained Allocation | BurTech Acquisition vs. Thrivent High Yield | BurTech Acquisition vs. Via Renewables |
Swiftmerge Acquisition vs. Aquagold International | Swiftmerge Acquisition vs. Morningstar Unconstrained Allocation | Swiftmerge Acquisition vs. Thrivent High Yield | Swiftmerge Acquisition vs. Via Renewables |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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