Correlation Between Bridgetown Holdings and Clene
Can any of the company-specific risk be diversified away by investing in both Bridgetown Holdings and Clene 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 Clene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgetown Holdings and Clene Inc, you can compare the effects of market volatilities on Bridgetown Holdings and Clene 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 Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgetown Holdings and Clene.
Diversification Opportunities for Bridgetown Holdings and Clene
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bridgetown and Clene is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bridgetown Holdings and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc 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 Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of Bridgetown Holdings i.e., Bridgetown Holdings and Clene go up and down completely randomly.
Pair Corralation between Bridgetown Holdings and Clene
If you would invest 3.33 in Clene Inc on September 1, 2024 and sell it today you would earn a total of 0.38 from holding Clene Inc or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Bridgetown Holdings vs. Clene Inc
Performance |
| Timeline |
| Bridgetown Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Clene Inc |
Bridgetown Holdings and Clene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgetown Holdings and Clene
The main advantage of trading using opposite Bridgetown Holdings and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgetown Holdings position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| Bridgetown Holdings vs. Tesla Inc | Bridgetown Holdings vs. Brunswick | Bridgetown Holdings vs. U Power Limited | Bridgetown Holdings vs. Yum Brands |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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