Correlation Between BurTech Acquisition and Flag Ship
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Flag Ship 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 Flag Ship 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 Flag Ship Acquisition, you can compare the effects of market volatilities on BurTech Acquisition and Flag Ship 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 Flag Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Flag Ship.
Diversification Opportunities for BurTech Acquisition and Flag Ship
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BurTech and Flag is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Flag Ship Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flag Ship 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 Flag Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flag Ship Acquisition has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Flag Ship go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Flag Ship
Assuming the 90 days horizon BurTech Acquisition is expected to generate 1.55 times less return on investment than Flag Ship. In addition to that, BurTech Acquisition is 2.76 times more volatile than Flag Ship Acquisition. It trades about 0.06 of its total potential returns per unit of risk. Flag Ship Acquisition is currently generating about 0.25 per unit of volatility. If you would invest 1,005 in Flag Ship Acquisition on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Flag Ship Acquisition or generate 0.7% 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. Flag Ship Acquisition
Performance |
| Timeline |
| BurTech Acquisition Corp |
| Flag Ship Acquisition |
BurTech Acquisition and Flag Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Flag Ship
The main advantage of trading using opposite BurTech Acquisition and Flag Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Flag Ship 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 Flag Ship will offset losses from the drop in Flag Ship's long position.| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. Aurora Innovation | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International |
| Flag Ship vs. Prudential Financial | Flag Ship vs. MetLife | Flag Ship vs. Unum Group | Flag Ship vs. Manulife Financial 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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