Correlation Between BurTech Acquisition and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Thunder Bridge 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 Thunder Bridge 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 Thunder Bridge Capital, you can compare the effects of market volatilities on BurTech Acquisition and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Thunder Bridge.
Diversification Opportunities for BurTech Acquisition and Thunder Bridge
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BurTech and Thunder is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Thunder Bridge go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Thunder Bridge
Given the investment horizon of 90 days BurTech Acquisition is expected to generate 1.84 times less return on investment than Thunder Bridge. But when comparing it to its historical volatility, BurTech Acquisition Corp is 2.56 times less risky than Thunder Bridge. It trades about 0.09 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,023 in Thunder Bridge Capital on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Thunder Bridge Capital or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. Thunder Bridge Capital
Performance |
| Timeline |
| BurTech Acquisition Corp |
| Thunder Bridge Capital |
BurTech Acquisition and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Thunder Bridge
The main advantage of trading using opposite BurTech Acquisition and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge'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 |
| Thunder Bridge vs. Visa Class A | Thunder Bridge vs. Diamond Hill Investment | Thunder Bridge vs. Distoken Acquisition | Thunder Bridge vs. Associated Capital Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |