Correlation Between Concord Acquisition and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition 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 Concord Acquisition and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Acquisition Corp and BurTech Acquisition Corp, you can compare the effects of market volatilities on Concord Acquisition 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 Concord Acquisition with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and BurTech Acquisition.
Diversification Opportunities for Concord Acquisition and BurTech Acquisition
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concord and BurTech is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp 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 Concord Acquisition 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 Concord Acquisition Corp 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 Concord Acquisition i.e., Concord Acquisition and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Concord Acquisition and BurTech Acquisition
If you would invest 1,090 in BurTech Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 57.00 from holding BurTech Acquisition Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Concord Acquisition Corp vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BurTech Acquisition Corp |
Concord Acquisition and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and BurTech Acquisition
The main advantage of trading using opposite Concord Acquisition and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition 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.| Concord Acquisition vs. Thunder Bridge Capital | Concord Acquisition vs. Welsbach Technology Metals | Concord Acquisition vs. Hudson Acquisition I | Concord Acquisition vs. Marblegate Acquisition Corp |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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