Correlation Between Waldencast Acquisition and Bitech Technologies
Can any of the company-specific risk be diversified away by investing in both Waldencast Acquisition and Bitech Technologies 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 Waldencast Acquisition and Bitech Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waldencast Acquisition Corp and Bitech Technologies, you can compare the effects of market volatilities on Waldencast Acquisition and Bitech Technologies 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 Waldencast Acquisition with a short position of Bitech Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and Bitech Technologies.
Diversification Opportunities for Waldencast Acquisition and Bitech Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Waldencast and Bitech is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp and Bitech Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitech Technologies and Waldencast 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 Waldencast Acquisition Corp are associated (or correlated) with Bitech Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitech Technologies has no effect on the direction of Waldencast Acquisition i.e., Waldencast Acquisition and Bitech Technologies go up and down completely randomly.
Pair Corralation between Waldencast Acquisition and Bitech Technologies
Given the investment horizon of 90 days Waldencast Acquisition Corp is expected to generate 0.14 times more return on investment than Bitech Technologies. However, Waldencast Acquisition Corp is 7.04 times less risky than Bitech Technologies. It trades about -0.28 of its potential returns per unit of risk. Bitech Technologies is currently generating about -0.08 per unit of risk. If you would invest 366.00 in Waldencast Acquisition Corp on November 29, 2024 and sell it today you would lose (60.00) from holding Waldencast Acquisition Corp or give up 16.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Waldencast Acquisition Corp vs. Bitech Technologies
Performance |
| Timeline |
| Waldencast Acquisition |
| Bitech Technologies |
Waldencast Acquisition and Bitech Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waldencast Acquisition and Bitech Technologies
The main advantage of trading using opposite Waldencast Acquisition and Bitech Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waldencast Acquisition position performs unexpectedly, Bitech Technologies 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 Bitech Technologies will offset losses from the drop in Bitech Technologies' long position.| Waldencast Acquisition vs. Where Food Comes | Waldencast Acquisition vs. VTEX | Waldencast Acquisition vs. Vertex | Waldencast Acquisition vs. BASE Inc |
| Bitech Technologies vs. Ackroo Inc | Bitech Technologies vs. CurrentC Power | Bitech Technologies vs. Auddia Inc | Bitech Technologies vs. Agent Information Software |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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