Correlation Between BurTech Acquisition and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Global Blockchain 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 Global Blockchain 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 Global Blockchain Acquisition, you can compare the effects of market volatilities on BurTech Acquisition and Global Blockchain 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 Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Global Blockchain.
Diversification Opportunities for BurTech Acquisition and Global Blockchain
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BurTech and Global is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain 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 Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Global Blockchain go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Global Blockchain
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 89.79 times more return on investment than Global Blockchain. However, BurTech Acquisition is 89.79 times more volatile than Global Blockchain Acquisition. It trades about 0.09 of its potential returns per unit of risk. Global Blockchain Acquisition is currently generating about 0.03 per unit of risk. If you would invest 1.61 in BurTech Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 21.39 from holding BurTech Acquisition Corp or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.29% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. Global Blockchain Acquisition
Performance |
| Timeline |
| BurTech Acquisition Corp |
| Global Blockchain |
BurTech Acquisition and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Global Blockchain
The main advantage of trading using opposite BurTech Acquisition and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Global Blockchain 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 Global Blockchain will offset losses from the drop in Global Blockchain's long position.| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. Aurora Innovation | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International |
| Global Blockchain vs. Embrace Change Acquisition | Global Blockchain vs. Bannix Acquisition Corp | Global Blockchain vs. TransAKT | Global Blockchain vs. China Health Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |