Correlation Between BurTech Acquisition and IB Acquisition
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and IB 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 IB 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 IB Acquisition Corp, you can compare the effects of market volatilities on BurTech Acquisition and IB 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 IB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and IB Acquisition.
Diversification Opportunities for BurTech Acquisition and IB Acquisition
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BurTech and IBACR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB 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 IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and IB Acquisition go up and down completely randomly.
Pair Corralation between BurTech Acquisition and IB Acquisition
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 0.02 times more return on investment than IB Acquisition. However, BurTech Acquisition Corp is 49.89 times less risky than IB Acquisition. It trades about 0.12 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about -0.03 per unit of risk. If you would invest 1,160 in BurTech Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 10.00 from holding BurTech Acquisition Corp or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. IB Acquisition Corp
Performance |
| Timeline |
| BurTech Acquisition Corp |
| IB Acquisition Corp |
BurTech Acquisition and IB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and IB Acquisition
The main advantage of trading using opposite BurTech Acquisition and IB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, IB 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 IB Acquisition will offset losses from the drop in IB Acquisition's long position.The idea behind BurTech Acquisition Corp and IB Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IB Acquisition vs. Perseus Mining Limited | IB Acquisition vs. Mesa Air Group | IB Acquisition vs. HF Sinclair Corp | IB Acquisition vs. Westinghouse Air Brake |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |