Correlation Between BigBearai Holdings and Chindata Group
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Chindata Group 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 Chindata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Chindata Group Holdings, you can compare the effects of market volatilities on BigBearai Holdings and Chindata Group 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 Chindata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Chindata Group.
Diversification Opportunities for BigBearai Holdings and Chindata Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BigBearai and Chindata is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Chindata Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chindata Group Holdings 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 Chindata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chindata Group Holdings has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Chindata Group go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Chindata Group
If you would invest 453.00 in BigBearai Holdings on November 4, 2024 and sell it today you would lose (29.00) from holding BigBearai Holdings or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
BigBearai Holdings vs. Chindata Group Holdings
Performance |
| Timeline |
| BigBearai Holdings |
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BigBearai Holdings and Chindata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Chindata Group
The main advantage of trading using opposite BigBearai Holdings and Chindata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Chindata Group 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 Chindata Group will offset losses from the drop in Chindata Group's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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