Correlation Between Alpha Star and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Alpha Star and BurTech 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 Alpha Star and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Star Acquisition and BurTech Acquisition Corp, you can compare the effects of market volatilities on Alpha Star and BurTech 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 Alpha Star with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Star and BurTech Acquisition.
Diversification Opportunities for Alpha Star and BurTech Acquisition
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alpha and BurTech is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Star Acquisition and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp and Alpha Star 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 Alpha Star Acquisition are associated (or correlated) with BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Alpha Star i.e., Alpha Star and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Alpha Star and BurTech Acquisition
If you would invest 1,390 in BurTech Acquisition Corp on November 5, 2024 and sell it today you would earn a total of 0.00 from holding BurTech Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Alpha Star Acquisition vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Alpha Star Acquisition |
| BurTech Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Alpha Star and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Star and BurTech Acquisition
The main advantage of trading using opposite Alpha Star and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Star position performs unexpectedly, BurTech 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.The idea behind Alpha Star Acquisition and BurTech 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.| BurTech Acquisition vs. ClimateRock Class A | BurTech Acquisition vs. Alpha Star Acquisition | BurTech Acquisition vs. Alpha One |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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