Correlation Between IX Acquisition and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both IX 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 IX 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 IX Acquisition Corp and BurTech Acquisition Corp, you can compare the effects of market volatilities on IX 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 IX Acquisition with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and BurTech Acquisition.
Diversification Opportunities for IX Acquisition and BurTech Acquisition
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IXAQ and BurTech is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding IX 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 IX 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 IX 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 IX Acquisition i.e., IX Acquisition and BurTech Acquisition go up and down completely randomly.
Pair Corralation between IX Acquisition and BurTech Acquisition
Given the investment horizon of 90 days IX Acquisition is expected to generate 1.18 times less return on investment than BurTech Acquisition. In addition to that, IX Acquisition is 1.19 times more volatile than BurTech Acquisition Corp. It trades about 0.06 of its total potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,047 in BurTech Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 94.00 from holding BurTech Acquisition Corp or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IX Acquisition Corp vs. BurTech Acquisition Corp
Performance |
| Timeline |
| IX Acquisition Corp |
| BurTech Acquisition Corp |
IX Acquisition and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and BurTech Acquisition
The main advantage of trading using opposite IX Acquisition and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX 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.| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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