Correlation Between BurTech Acquisition and TPG RE
Can any of the company-specific risk be diversified away by investing in both BurTech Acquisition and TPG RE 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 TPG RE 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 TPG RE Finance, you can compare the effects of market volatilities on BurTech Acquisition and TPG RE 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 TPG RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurTech Acquisition and TPG RE.
Diversification Opportunities for BurTech Acquisition and TPG RE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BurTech and TPG is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BurTech Acquisition Corp and TPG RE Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG RE Finance 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 TPG RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG RE Finance has no effect on the direction of BurTech Acquisition i.e., BurTech Acquisition and TPG RE go up and down completely randomly.
Pair Corralation between BurTech Acquisition and TPG RE
Assuming the 90 days horizon BurTech Acquisition Corp is expected to generate 27.18 times more return on investment than TPG RE. However, BurTech Acquisition is 27.18 times more volatile than TPG RE Finance. It trades about 0.09 of its potential returns per unit of risk. TPG RE Finance is currently generating about 0.1 per unit of risk. If you would invest 1.30 in BurTech Acquisition Corp on August 24, 2024 and sell it today you would earn a total of 19.69 from holding BurTech Acquisition Corp or generate 1514.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
BurTech Acquisition Corp vs. TPG RE Finance
Performance |
| Timeline |
| BurTech Acquisition Corp |
| TPG RE Finance |
BurTech Acquisition and TPG RE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurTech Acquisition and TPG RE
The main advantage of trading using opposite BurTech Acquisition and TPG RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurTech Acquisition position performs unexpectedly, TPG RE 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 TPG RE will offset losses from the drop in TPG RE's long position.| BurTech Acquisition vs. Distoken Acquisition | BurTech Acquisition vs. Voyager Acquisition Corp | BurTech Acquisition vs. dMY Squared Technology | BurTech Acquisition vs. YHN Acquisition I |
| TPG RE vs. Ellington Residential Mortgage | TPG RE vs. Ares Commercial Real | TPG RE vs. Nexpoint Real Estate | TPG RE vs. Ellington Financial |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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