Correlation Between Bridgetown Holdings and Breeze Holdings
Can any of the company-specific risk be diversified away by investing in both Bridgetown Holdings and Breeze Holdings 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 Bridgetown Holdings and Breeze Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgetown Holdings and Breeze Holdings Acquisition, you can compare the effects of market volatilities on Bridgetown Holdings and Breeze Holdings 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 Bridgetown Holdings with a short position of Breeze Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgetown Holdings and Breeze Holdings.
Diversification Opportunities for Bridgetown Holdings and Breeze Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bridgetown and Breeze is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bridgetown Holdings and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu and Bridgetown Holdings 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 Bridgetown Holdings are associated (or correlated) with Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of Bridgetown Holdings i.e., Bridgetown Holdings and Breeze Holdings go up and down completely randomly.
Pair Corralation between Bridgetown Holdings and Breeze Holdings
Assuming the 90 days horizon Bridgetown Holdings is expected to generate 33.53 times more return on investment than Breeze Holdings. However, Bridgetown Holdings is 33.53 times more volatile than Breeze Holdings Acquisition. It trades about 0.06 of its potential returns per unit of risk. Breeze Holdings Acquisition is currently generating about 0.13 per unit of risk. If you would invest 17.00 in Bridgetown Holdings on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Bridgetown Holdings or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.36% |
| Values | Daily Returns |
Bridgetown Holdings vs. Breeze Holdings Acquisition
Performance |
| Timeline |
| Bridgetown Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgetown Holdings and Breeze Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgetown Holdings and Breeze Holdings
The main advantage of trading using opposite Bridgetown Holdings and Breeze Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgetown Holdings position performs unexpectedly, Breeze Holdings 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 Breeze Holdings will offset losses from the drop in Breeze Holdings' long position.| Bridgetown Holdings vs. Flex | Bridgetown Holdings vs. Kite Realty Group | Bridgetown Holdings vs. GMS Inc | Bridgetown Holdings vs. Coupang LLC |
| Breeze Holdings vs. Qomolangma Acquisition Corp | Breeze Holdings vs. Futuretech II Acquisition | Breeze Holdings vs. Patria Latin American |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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