Correlation Between BurTech Acquisition and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and IX 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 BurTech Acquisition and IX Acquisition 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 IX Acquisition Corp, you can compare the effects of market volatilities on BurTech Acquisition and IX 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 BurTech Acquisition with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and IX Acquisition.
Diversification Opportunities for BurTech Acquisition and IX Acquisition
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BurTech and IXAQ is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and IX Acquisition go up and down completely randomly.
Pair Corralation between BurTech Acquisition and IX Acquisition
Given the investment horizon of 90 days BurTech Acquisition Corp is expected to generate 0.29 times more return on investment than IX Acquisition. However, BurTech Acquisition Corp is 3.43 times less risky than IX Acquisition. It trades about 0.09 of its potential returns per unit of risk. IX Acquisition Corp is currently generating about -0.19 per unit of risk. If you would invest 1,137 in BurTech Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 4.00 from holding BurTech Acquisition Corp or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. IX Acquisition Corp
Performance |
| Timeline |
| BurTech Acquisition Corp |
| IX Acquisition Corp |
BurTech Acquisition and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and IX Acquisition
The main advantage of trading using opposite BurTech Acquisition and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, IX 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 IX Acquisition will offset losses from the drop in IX Acquisition'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 |
| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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