Correlation Between BurTech Acquisition and PJT Partners
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and PJT Partners 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 PJT Partners 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 PJT Partners, you can compare the effects of market volatilities on BurTech Acquisition and PJT Partners 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 PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and PJT Partners.
Diversification Opportunities for BurTech Acquisition and PJT Partners
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BurTech and PJT is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners 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 PJT Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJT Partners has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and PJT Partners go up and down completely randomly.
Pair Corralation between BurTech Acquisition and PJT Partners
Assuming the 90 days horizon BurTech Acquisition is expected to generate 43.22 times less return on investment than PJT Partners. But when comparing it to its historical volatility, BurTech Acquisition Corp is 10.09 times less risky than PJT Partners. It trades about 0.06 of its potential returns per unit of risk. PJT Partners is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 13,782 in PJT Partners on August 31, 2024 and sell it today you would earn a total of 2,737 from holding PJT Partners or generate 19.86% 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. PJT Partners
Performance |
| Timeline |
| BurTech Acquisition Corp |
| PJT Partners |
BurTech Acquisition and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and PJT Partners
The main advantage of trading using opposite BurTech Acquisition and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, PJT Partners 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 PJT Partners will offset losses from the drop in PJT Partners' long position.| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International | BurTech Acquisition vs. Barloworld Ltd ADR |
| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
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.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |