Correlation Between TENK Old and Bannix Acquisition

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

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

Diversification Opportunities for TENK Old and Bannix Acquisition

0.0

Correlation Coefficient

TENK Old  Bannix Acquisition

Pay attention - limited upside

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

Pair Corralation between TENK Old and Bannix Acquisition

If you would invest (100.00) in TENK Old on December 1, 2024 and sell it today you would earn a total of  100.00  from holding TENK Old or generate -100.0% return on investment over 90 days.

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

TENK Old  vs.  Bannix Acquisition Corp

TENK Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days TENK Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, TENK Old is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Bannix Acquisition Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bannix Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward indicators, Bannix Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TENK Old and Bannix Acquisition

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

The idea behind TENK Old and Bannix 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.