Correlation Between Alithya and BigBearai Holdings
Can any of the company-specific risk be diversified away by investing in both Alithya and BigBearai Holdings 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 Alithya and BigBearai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alithya Group and BigBearai Holdings, you can compare the effects of market volatilities on Alithya and BigBearai Holdings 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 Alithya with a short position of BigBearai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya and BigBearai Holdings.
Diversification Opportunities for Alithya and BigBearai Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alithya and BigBearai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and Alithya 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 Alithya Group are associated (or correlated) with BigBearai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBearai Holdings has no effect on the direction of Alithya i.e., Alithya and BigBearai Holdings go up and down completely randomly.
Pair Corralation between Alithya and BigBearai Holdings
Given the investment horizon of 90 days Alithya is expected to generate 8.54 times less return on investment than BigBearai Holdings. But when comparing it to its historical volatility, Alithya Group is 5.59 times less risky than BigBearai Holdings. It trades about 0.04 of its potential returns per unit of risk. BigBearai Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 76.00 in BigBearai Holdings on August 31, 2024 and sell it today you would earn a total of 153.00 from holding BigBearai Holdings or generate 201.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.45% |
| Values | Daily Returns |
Alithya Group vs. BigBearai Holdings
Performance |
| Timeline |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BigBearai Holdings |
Alithya and BigBearai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alithya and BigBearai Holdings
The main advantage of trading using opposite Alithya and BigBearai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alithya position performs unexpectedly, BigBearai Holdings 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 BigBearai Holdings will offset losses from the drop in BigBearai Holdings' long position.| Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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