Correlation Between Berenson Acquisition and Oak Woods
Can any of the company-specific risk be diversified away by investing in both Berenson Acquisition and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on Berenson Acquisition and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berenson Acquisition and Oak Woods.
Diversification Opportunities for Berenson Acquisition and Oak Woods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Berenson and Oak is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Berenson Acquisition Corp and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of Berenson Acquisition i.e., Berenson Acquisition and Oak Woods go up and down completely randomly.
Pair Corralation between Berenson Acquisition and Oak Woods
If you would invest 1,144 in Oak Woods Acquisition on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Oak Woods Acquisition or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Berenson Acquisition Corp vs. Oak Woods Acquisition
Performance |
| Timeline |
| Berenson Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oak Woods Acquisition |
Berenson Acquisition and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berenson Acquisition and Oak Woods
The main advantage of trading using opposite Berenson Acquisition and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berenson Acquisition position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.The idea behind Berenson Acquisition Corp and Oak Woods 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.| Oak Woods vs. Franklin Wireless Corp | Oak Woods vs. McGrath RentCorp | Oak Woods vs. Sphere Entertainment Co | Oak Woods vs. MobileSmith |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |