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
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BurTech and ClimateRock is -0.71. 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
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 2.42 times more return on investment than ClimateRock. However, BurTech Acquisition is 2.42 times more volatile than ClimateRock Class A. It trades about 0.02 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.05 per unit of risk. If you would invest 1,027 in BurTech Acquisition Corp on August 28, 2024 and sell it today you would earn a total of 122.00 from holding BurTech Acquisition Corp or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| 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. Aurora Innovation | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International | BurTech Acquisition vs. Barloworld Ltd ADR |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris 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.
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