Correlation Between BurTech Acquisition and Nuveen Variable
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Nuveen Variable 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 Nuveen Variable 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 Nuveen Variable Rate, you can compare the effects of market volatilities on BurTech Acquisition and Nuveen Variable 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 Nuveen Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Nuveen Variable.
Diversification Opportunities for BurTech Acquisition and Nuveen Variable
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BurTech and Nuveen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Nuveen Variable Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Variable Rate 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 Nuveen Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Variable Rate has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Nuveen Variable go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Nuveen Variable
Assuming the 90 days horizon BurTech Acquisition is expected to generate 2.09 times less return on investment than Nuveen Variable. In addition to that, BurTech Acquisition is 2.39 times more volatile than Nuveen Variable Rate. It trades about 0.03 of its total potential returns per unit of risk. Nuveen Variable Rate is currently generating about 0.13 per unit of volatility. If you would invest 1,382 in Nuveen Variable Rate on August 31, 2024 and sell it today you would earn a total of 547.00 from holding Nuveen Variable Rate or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. Nuveen Variable Rate
Performance |
| Timeline |
| BurTech Acquisition Corp |
| Nuveen Variable Rate |
BurTech Acquisition and Nuveen Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Nuveen Variable
The main advantage of trading using opposite BurTech Acquisition and Nuveen Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Nuveen Variable 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 Nuveen Variable will offset losses from the drop in Nuveen Variable's long position.| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International | BurTech Acquisition vs. Barloworld Ltd ADR |
| Nuveen Variable vs. The Gabelli Equity | Nuveen Variable vs. Virtus AllianzGI Convertible | Nuveen Variable vs. The Gabelli Equity | Nuveen Variable vs. Oxford Lane Capital |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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