Correlation Between Bayview Acquisition and Black Hawk
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition and Black Hawk 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 Bayview Acquisition and Black Hawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayview Acquisition Corp and Black Hawk Acquisition, you can compare the effects of market volatilities on Bayview Acquisition and Black Hawk 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 Bayview Acquisition with a short position of Black Hawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and Black Hawk.
Diversification Opportunities for Bayview Acquisition and Black Hawk
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bayview and Black is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and Black Hawk Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Hawk Acquisition and Bayview 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 Bayview Acquisition Corp are associated (or correlated) with Black Hawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Hawk Acquisition has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and Black Hawk go up and down completely randomly.
Pair Corralation between Bayview Acquisition and Black Hawk
Assuming the 90 days horizon Bayview Acquisition Corp is expected to generate 4.84 times more return on investment than Black Hawk. However, Bayview Acquisition is 4.84 times more volatile than Black Hawk Acquisition. It trades about 0.21 of its potential returns per unit of risk. Black Hawk Acquisition is currently generating about 0.0 per unit of risk. If you would invest 15.00 in Bayview Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Bayview Acquisition Corp or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. Black Hawk Acquisition
Performance |
| Timeline |
| Bayview Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Black Hawk Acquisition |
Bayview Acquisition and Black Hawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and Black Hawk
The main advantage of trading using opposite Bayview Acquisition and Black Hawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition position performs unexpectedly, Black Hawk 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 Black Hawk will offset losses from the drop in Black Hawk's long position.| Bayview Acquisition vs. Voyager Acquisition Corp | Bayview Acquisition vs. dMY Squared Technology | Bayview Acquisition vs. YHN Acquisition I | Bayview Acquisition vs. CO2 Energy Transition |
| Black Hawk vs. Playtika Holding Corp | Black Hawk vs. ScanSource | Black Hawk vs. Uber Technologies | Black Hawk vs. Senmiao Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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