Correlation Between Bitech Technologies and Waldencast Acquisition
Can any of the company-specific risk be diversified away by investing in both Bitech Technologies and Waldencast Acquisition 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 Bitech Technologies and Waldencast Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitech Technologies and Waldencast Acquisition Corp, you can compare the effects of market volatilities on Bitech Technologies and Waldencast Acquisition 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 Bitech Technologies with a short position of Waldencast Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitech Technologies and Waldencast Acquisition.
Diversification Opportunities for Bitech Technologies and Waldencast Acquisition
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitech and Waldencast is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bitech Technologies and Waldencast Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waldencast Acquisition and Bitech Technologies 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 Bitech Technologies are associated (or correlated) with Waldencast Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waldencast Acquisition has no effect on the direction of Bitech Technologies i.e., Bitech Technologies and Waldencast Acquisition go up and down completely randomly.
Pair Corralation between Bitech Technologies and Waldencast Acquisition
Given the investment horizon of 90 days Bitech Technologies is expected to generate 1.92 times more return on investment than Waldencast Acquisition. However, Bitech Technologies is 1.92 times more volatile than Waldencast Acquisition Corp. It trades about 0.03 of its potential returns per unit of risk. Waldencast Acquisition Corp is currently generating about -0.15 per unit of risk. If you would invest 7.00 in Bitech Technologies on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Bitech Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitech Technologies vs. Waldencast Acquisition Corp
Performance |
| Timeline |
| Bitech Technologies |
| Waldencast Acquisition |
Bitech Technologies and Waldencast Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitech Technologies and Waldencast Acquisition
The main advantage of trading using opposite Bitech Technologies and Waldencast Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitech Technologies position performs unexpectedly, Waldencast Acquisition 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 Waldencast Acquisition will offset losses from the drop in Waldencast Acquisition's long position.| Bitech Technologies vs. Waldencast Acquisition Corp | Bitech Technologies vs. Alkami Technology | Bitech Technologies vs. ADEIA P | Bitech Technologies vs. Paycor HCM |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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