Correlation Between Berenson Acquisition and Home Plate
Can any of the company-specific risk be diversified away by investing in both Berenson Acquisition and Home Plate 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 Berenson Acquisition and Home Plate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berenson Acquisition Corp and Home Plate Acquisition, you can compare the effects of market volatilities on Berenson Acquisition and Home Plate 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 Berenson Acquisition with a short position of Home Plate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berenson Acquisition and Home Plate.
Diversification Opportunities for Berenson Acquisition and Home Plate
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berenson and Home is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Berenson Acquisition Corp and Home Plate Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Plate Acquisition and Berenson 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 Berenson Acquisition Corp are associated (or correlated) with Home Plate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Plate Acquisition has no effect on the direction of Berenson Acquisition i.e., Berenson Acquisition and Home Plate go up and down completely randomly.
Pair Corralation between Berenson Acquisition and Home Plate
If you would invest 1,030 in Home Plate Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Home Plate Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.19% |
| Values | Daily Returns |
Berenson Acquisition Corp vs. Home Plate Acquisition
Performance |
| Timeline |
| Berenson Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Home Plate Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Berenson Acquisition and Home Plate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berenson Acquisition and Home Plate
The main advantage of trading using opposite Berenson Acquisition and Home Plate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berenson Acquisition position performs unexpectedly, Home Plate 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 Home Plate will offset losses from the drop in Home Plate's long position.The idea behind Berenson Acquisition Corp and Home Plate Acquisition 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.| Home Plate vs. Embrace Change Acquisition | Home Plate vs. Bannix Acquisition Corp | Home Plate vs. Global Blockchain Acquisition | Home Plate vs. Bannix Acquisition Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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