Correlation Between Bridgetown Holdings and Better World
Can any of the company-specific risk be diversified away by investing in both Bridgetown Holdings and Better World 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 Better World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgetown Holdings and Better World Acquisition, you can compare the effects of market volatilities on Bridgetown Holdings and Better World 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 Better World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgetown Holdings and Better World.
Diversification Opportunities for Bridgetown Holdings and Better World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgetown and Better is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bridgetown Holdings and Better World Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better World Acquisition 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 Better World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better World Acquisition has no effect on the direction of Bridgetown Holdings i.e., Bridgetown Holdings and Better World go up and down completely randomly.
Pair Corralation between Bridgetown Holdings and Better World
Assuming the 90 days horizon Bridgetown Holdings is expected to generate 12.99 times more return on investment than Better World. However, Bridgetown Holdings is 12.99 times more volatile than Better World Acquisition. It trades about 0.05 of its potential returns per unit of risk. Better World Acquisition is currently generating about -0.05 per unit of risk. If you would invest 21.00 in Bridgetown Holdings on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Bridgetown Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgetown Holdings vs. Better World Acquisition
Performance |
| Timeline |
| Bridgetown Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Better World Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgetown Holdings and Better World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgetown Holdings and Better World
The main advantage of trading using opposite Bridgetown Holdings and Better World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgetown Holdings position performs unexpectedly, Better World 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 Better World will offset losses from the drop in Better World's long position.| Bridgetown Holdings vs. Energold Drilling Corp | Bridgetown Holdings vs. Precision Drilling | Bridgetown Holdings vs. Verra Mobility Corp | Bridgetown Holdings vs. Drilling Tools International |
| Better World vs. Khiron Life Sciences | Better World vs. Energy and Environmental | Better World vs. The Andersons | Better World vs. Gfl Environmental Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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