Correlation Between Brookfield Asset and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset 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 Brookfield Asset and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and BurTech Acquisition Corp, you can compare the effects of market volatilities on Brookfield Asset 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 Brookfield Asset with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and BurTech Acquisition.
Diversification Opportunities for Brookfield Asset and BurTech Acquisition
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brookfield and BurTech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management 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 Brookfield Asset 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 Brookfield Asset Management 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 Brookfield Asset i.e., Brookfield Asset and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Brookfield Asset and BurTech Acquisition
Considering the 90-day investment horizon Brookfield Asset Management is expected to generate 7.37 times more return on investment than BurTech Acquisition. However, Brookfield Asset is 7.37 times more volatile than BurTech Acquisition Corp. It trades about 0.27 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.19 per unit of risk. If you would invest 5,269 in Brookfield Asset Management on September 1, 2024 and sell it today you would earn a total of 447.00 from holding Brookfield Asset Management or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Brookfield Asset Man |
| BurTech Acquisition Corp |
Brookfield Asset and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and BurTech Acquisition
The main advantage of trading using opposite Brookfield Asset and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset 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.| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |