Correlation Between BurTech Acquisition and ClimateRock
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and ClimateRock 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 BurTech Acquisition and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BurTech Acquisition Corp and ClimateRock Class A, you can compare the effects of market volatilities on BurTech Acquisition and ClimateRock 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 BurTech Acquisition with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and ClimateRock.
Diversification Opportunities for BurTech Acquisition and ClimateRock
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BurTech and ClimateRock is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and BurTech 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 BurTech Acquisition Corp are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and ClimateRock go up and down completely randomly.
Pair Corralation between BurTech Acquisition and ClimateRock
Given the investment horizon of 90 days BurTech Acquisition Corp is expected to generate 2.52 times more return on investment than ClimateRock. However, BurTech Acquisition is 2.52 times more volatile than ClimateRock Class A. It trades about 0.2 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.26 per unit of risk. If you would invest 1,137 in BurTech Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 10.00 from holding BurTech Acquisition Corp or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. ClimateRock Class A
Performance |
| Timeline |
| BurTech Acquisition Corp |
| ClimateRock Class |
BurTech Acquisition and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and ClimateRock
The main advantage of trading using opposite BurTech Acquisition and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
| ClimateRock vs. Patria Latin American | ClimateRock vs. ABIVAX Socit Anonyme | ClimateRock vs. Pinnacle Sherman Multi Strategy | ClimateRock vs. Morningstar Unconstrained Allocation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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