Correlation Between BioPlus Acquisition and Swiftmerge Acquisition

Can any of the company-specific risk be diversified away by investing in both BioPlus Acquisition and Swiftmerge 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 BioPlus Acquisition and Swiftmerge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioPlus Acquisition Corp and Swiftmerge Acquisition Corp, you can compare the effects of market volatilities on BioPlus Acquisition and Swiftmerge 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 BioPlus Acquisition with a short position of Swiftmerge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioPlus Acquisition and Swiftmerge Acquisition.

Diversification Opportunities for BioPlus Acquisition and Swiftmerge Acquisition

0.52

Correlation Coefficient

BioPlus Acquisition  Swiftmerge Acquisition

Very weak diversification

The 3 months correlation between BioPlus and Swiftmerge is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BioPlus Acquisition Corp and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge Acquisition and BioPlus 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 BioPlus Acquisition Corp are associated (or correlated) with Swiftmerge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiftmerge Acquisition has no effect on the direction of BioPlus Acquisition i.e., BioPlus Acquisition and Swiftmerge Acquisition go up and down completely randomly.

Pair Corralation between BioPlus Acquisition and Swiftmerge Acquisition

If you would invest  10.00  in Swiftmerge Acquisition Corp on September 14, 2024 and sell it today you would earn a total of  7.00  from holding Swiftmerge Acquisition Corp or generate 70.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.86%
Values	Daily Returns

BioPlus Acquisition Corp  vs.  Swiftmerge Acquisition Corp

BioPlus Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioPlus Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, BioPlus Acquisition is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Swiftmerge Acquisition

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swiftmerge Acquisition Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Swiftmerge Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioPlus Acquisition and Swiftmerge Acquisition

The main advantage of trading using opposite BioPlus Acquisition and Swiftmerge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioPlus Acquisition position performs unexpectedly, Swiftmerge 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 Swiftmerge Acquisition will offset losses from the drop in Swiftmerge Acquisition's long position.

The idea behind BioPlus Acquisition Corp and Swiftmerge 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.

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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 Stocks Directory module to find actively traded stocks across global markets.