Correlation Between BigBearai Holdings and Carbios SAS
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Carbios SAS 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 Carbios SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Carbios SAS, you can compare the effects of market volatilities on BigBearai Holdings and Carbios SAS 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 Carbios SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Carbios SAS.
Diversification Opportunities for BigBearai Holdings and Carbios SAS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and Carbios is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Carbios SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbios SAS 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 Carbios SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbios SAS has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Carbios SAS go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Carbios SAS
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.45 times more return on investment than Carbios SAS. However, BigBearai Holdings is 1.45 times more volatile than Carbios SAS. It trades about 0.22 of its potential returns per unit of risk. Carbios SAS is currently generating about 0.1 per unit of risk. If you would invest 173.00 in BigBearai Holdings on September 15, 2024 and sell it today you would earn a total of 79.00 from holding BigBearai Holdings or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. Carbios SAS
Performance |
| Timeline |
| BigBearai Holdings |
| Carbios SAS |
BigBearai Holdings and Carbios SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Carbios SAS
The main advantage of trading using opposite BigBearai Holdings and Carbios SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Carbios SAS 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 Carbios SAS will offset losses from the drop in Carbios SAS's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Carbios SAS vs. Chemours Co | Carbios SAS vs. International Flavors Fragrances | Carbios SAS vs. Air Products and | Carbios SAS vs. PPG Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |