Correlation Between BigBearai Holdings and GDS Holdings
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and GDS 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 BigBearai Holdings and GDS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and GDS Holdings, you can compare the effects of market volatilities on BigBearai Holdings and GDS 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 BigBearai Holdings with a short position of GDS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and GDS Holdings.
Diversification Opportunities for BigBearai Holdings and GDS Holdings
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between BigBearai and GDS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and GDS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDS 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 GDS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDS Holdings has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and GDS Holdings go up and down completely randomly.
Pair Corralation between BigBearai Holdings and GDS Holdings
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.2 times more return on investment than GDS Holdings. However, BigBearai Holdings is 1.2 times more volatile than GDS Holdings. It trades about 0.27 of its potential returns per unit of risk. GDS Holdings is currently generating about -0.12 per unit of risk. If you would invest 173.00 in BigBearai Holdings on August 27, 2024 and sell it today you would earn a total of 72.00 from holding BigBearai Holdings or generate 41.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. GDS Holdings
Performance |
| Timeline |
| BigBearai Holdings |
| GDS Holdings |
BigBearai Holdings and GDS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and GDS Holdings
The main advantage of trading using opposite BigBearai Holdings and GDS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, GDS 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 GDS Holdings will offset losses from the drop in GDS Holdings' long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| GDS Holdings vs. Oneconnect Financial Technology | GDS Holdings vs. Global Business Travel | GDS Holdings vs. Alight Inc | GDS Holdings vs. CS Disco LLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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