Correlation Between GM and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both GM 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 GM and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and BurTech Acquisition Corp, you can compare the effects of market volatilities on GM 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 GM with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and BurTech Acquisition.
Diversification Opportunities for GM and BurTech Acquisition
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and BurTech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and BurTech Acquisition go up and down completely randomly.
Pair Corralation between GM and BurTech Acquisition
Allowing for the 90-day total investment horizon General Motors is expected to generate 14.27 times more return on investment than BurTech Acquisition. However, GM is 14.27 times more volatile than BurTech Acquisition Corp. It trades about 0.17 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.19 per unit of risk. If you would invest 5,076 in General Motors on September 1, 2024 and sell it today you would earn a total of 483.00 from holding General Motors or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. BurTech Acquisition Corp
Performance |
| Timeline |
| General Motors |
| BurTech Acquisition Corp |
GM and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and BurTech Acquisition
The main advantage of trading using opposite GM and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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.The idea behind General Motors and BurTech Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |