Correlation Between BioPlus Acquisition and TKB Critical
Can any of the company-specific risk be diversified away by investing in both BioPlus Acquisition and TKB Critical 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 BioPlus Acquisition and TKB Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioPlus Acquisition Corp and TKB Critical Technologies, you can compare the effects of market volatilities on BioPlus Acquisition and TKB Critical 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 BioPlus Acquisition with a short position of TKB Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioPlus Acquisition and TKB Critical.
Diversification Opportunities for BioPlus Acquisition and TKB Critical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioPlus and TKB is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BioPlus Acquisition Corp and TKB Critical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKB Critical Technologies and BioPlus 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 BioPlus Acquisition Corp are associated (or correlated) with TKB Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKB Critical Technologies has no effect on the direction of BioPlus Acquisition i.e., BioPlus Acquisition and TKB Critical go up and down completely randomly.
Pair Corralation between BioPlus Acquisition and TKB Critical
Given the investment horizon of 90 days BioPlus Acquisition Corp is expected to generate 0.51 times more return on investment than TKB Critical. However, BioPlus Acquisition Corp is 1.97 times less risky than TKB Critical. It trades about 0.21 of its potential returns per unit of risk. TKB Critical Technologies is currently generating about 0.05 per unit of risk. If you would invest 1,019 in BioPlus Acquisition Corp on August 28, 2024 and sell it today you would earn a total of 54.00 from holding BioPlus Acquisition Corp or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.36% |
| Values | Daily Returns |
BioPlus Acquisition Corp vs. TKB Critical Technologies
Performance |
| Timeline |
| BioPlus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioPlus Acquisition and TKB Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioPlus Acquisition and TKB Critical
The main advantage of trading using opposite BioPlus Acquisition and TKB Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioPlus Acquisition position performs unexpectedly, TKB Critical 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 TKB Critical will offset losses from the drop in TKB Critical's long position.| BioPlus Acquisition vs. DP Cap Acquisition | BioPlus Acquisition vs. Oak Woods Acquisition | BioPlus Acquisition vs. Insight Acquisition Corp | BioPlus Acquisition vs. ClimateRock Class A |
| TKB Critical vs. ClimateRock Class A | TKB Critical vs. AlphaVest Acquisition Corp | TKB Critical vs. Golden Star Acquisition | TKB Critical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |