Correlation Between BurTech Acquisition and Invesco Municipal

Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Opportunity, you can compare the effects of market volatilities on BurTech Acquisition and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Invesco Municipal.

Diversification Opportunities for BurTech Acquisition and Invesco Municipal

0.0

Correlation Coefficient

BurTech Acquisition  Invesco Municipal

Pay attention - limited upside

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

Pair Corralation between BurTech Acquisition and Invesco Municipal

If you would invest  966.00  in Invesco Municipal Opportunity on November 29, 2024 and sell it today you would earn a total of  21.00  from holding Invesco Municipal Opportunity or generate 2.17% 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.  Invesco Municipal Opportunity

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.

Invesco Municipal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invesco Municipal Opportunity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Invesco Municipal is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BurTech Acquisition and Invesco Municipal

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

The idea behind BurTech Acquisition Corp and Invesco Municipal Opportunity 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.