Correlation Between BigBearai Holdings and Aston Martin
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Aston Martin 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 BigBearai Holdings and Aston Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Aston Martin Lagonda, you can compare the effects of market volatilities on BigBearai Holdings and Aston Martin 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 BigBearai Holdings with a short position of Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Aston Martin.
Diversification Opportunities for BigBearai Holdings and Aston Martin
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and Aston is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and BigBearai Holdings 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 BigBearai Holdings are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Aston Martin go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Aston Martin
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.6 times more return on investment than Aston Martin. However, BigBearai Holdings is 1.6 times more volatile than Aston Martin Lagonda. It trades about 0.1 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.02 per unit of risk. If you would invest 185.00 in BigBearai Holdings on November 9, 2024 and sell it today you would earn a total of 492.00 from holding BigBearai Holdings or generate 265.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
BigBearai Holdings vs. Aston Martin Lagonda
Performance |
| Timeline |
| BigBearai Holdings |
| Aston Martin Lagonda |
BigBearai Holdings and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Aston Martin
The main advantage of trading using opposite BigBearai Holdings and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Aston Martin vs. Polestar Automotive Holding | Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Mercedes Benz Group AG | Aston Martin vs. Porsche Automobile Holding |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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