Correlation Between BurTech Acquisition and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and Thunder Bridge 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 Thunder Bridge 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 Thunder Bridge Capital, you can compare the effects of market volatilities on BurTech Acquisition and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and Thunder Bridge.
Diversification Opportunities for BurTech Acquisition and Thunder Bridge
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BurTech and Thunder is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and Thunder Bridge go up and down completely randomly.
Pair Corralation between BurTech Acquisition and Thunder Bridge
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 12.01 times more return on investment than Thunder Bridge. However, BurTech Acquisition is 12.01 times more volatile than Thunder Bridge Capital. It trades about 0.13 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.34 per unit of risk. If you would invest 19.00 in BurTech Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 4.00 from holding BurTech Acquisition Corp or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. Thunder Bridge Capital
Performance |
| Timeline |
| BurTech Acquisition Corp |
| Thunder Bridge Capital |
BurTech Acquisition and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and Thunder Bridge
The main advantage of trading using opposite BurTech Acquisition and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. Aurora Innovation | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International |
| Thunder Bridge vs. PowerUp Acquisition Corp | Thunder Bridge vs. Aurora Innovation | Thunder Bridge vs. HUMANA INC | Thunder Bridge vs. Aquagold International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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