Correlation Between BurTech Acquisition and Kingswood Acquisition
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Kingswood 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 Kingswood 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 Kingswood Acquisition Corp, you can compare the effects of market volatilities on BurTech Acquisition and Kingswood 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 Kingswood Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Kingswood Acquisition.
Diversification Opportunities for BurTech Acquisition and Kingswood Acquisition
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BurTech and Kingswood is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Kingswood Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingswood Acquisition 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 Kingswood Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingswood Acquisition has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Kingswood Acquisition go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Kingswood Acquisition
If you would invest 1,080 in Kingswood Acquisition Corp on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Kingswood Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. Kingswood Acquisition Corp
Performance |
| Timeline |
| BurTech Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Kingswood Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BurTech Acquisition and Kingswood Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Kingswood Acquisition
The main advantage of trading using opposite BurTech Acquisition and Kingswood Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Kingswood 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 Kingswood Acquisition will offset losses from the drop in Kingswood Acquisition's long position.| BurTech Acquisition vs. ClimateRock Class A | BurTech Acquisition vs. Alpha Star Acquisition | BurTech Acquisition vs. Alpha One |
| Kingswood Acquisition vs. ClimateRock Class A | Kingswood Acquisition vs. Valuence Merger Corp | Kingswood Acquisition vs. Valuence Merger 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |