Correlation Between ClimateRock and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both ClimateRock and BurTech 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 ClimateRock and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClimateRock Class A and BurTech Acquisition Corp, you can compare the effects of market volatilities on ClimateRock and BurTech 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 ClimateRock with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and BurTech Acquisition.
Diversification Opportunities for ClimateRock and BurTech Acquisition
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ClimateRock and BurTech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp and ClimateRock 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 ClimateRock Class A are associated (or correlated) with BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of ClimateRock i.e., ClimateRock and BurTech Acquisition go up and down completely randomly.
Pair Corralation between ClimateRock and BurTech Acquisition
Given the investment horizon of 90 days ClimateRock is expected to generate 1.54 times less return on investment than BurTech Acquisition. But when comparing it to its historical volatility, ClimateRock Class A is 2.11 times less risky than BurTech Acquisition. It trades about 0.15 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,117 in BurTech Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 30.00 from holding BurTech Acquisition Corp or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClimateRock Class A vs. BurTech Acquisition Corp
Performance |
| Timeline |
| ClimateRock Class |
| BurTech Acquisition Corp |
ClimateRock and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and BurTech Acquisition
The main advantage of trading using opposite ClimateRock and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, BurTech 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| ClimateRock vs. Patria Latin American | ClimateRock vs. ABIVAX Socit Anonyme | ClimateRock vs. Pinnacle Sherman Multi Strategy | ClimateRock vs. Morningstar Unconstrained Allocation |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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