Correlation Between BigBearai Holdings and GGX Gold
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and GGX Gold 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 GGX Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and GGX Gold Corp, you can compare the effects of market volatilities on BigBearai Holdings and GGX Gold 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and GGX Gold.
Diversification Opportunities for BigBearai Holdings and GGX Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BigBearai and GGX is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX Gold Corp 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and GGX Gold go up and down completely randomly.
Pair Corralation between BigBearai Holdings and GGX Gold
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.74 times more return on investment than GGX Gold. However, BigBearai Holdings is 1.74 times more volatile than GGX Gold Corp. It trades about 0.01 of its potential returns per unit of risk. GGX Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 491.00 in BigBearai Holdings on December 6, 2024 and sell it today you would lose (64.00) from holding BigBearai Holdings or give up 13.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. GGX Gold Corp
Performance |
| Timeline |
| BigBearai Holdings |
| GGX Gold Corp |
BigBearai Holdings and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and GGX Gold
The main advantage of trading using opposite BigBearai Holdings and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, GGX Gold 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 GGX Gold will offset losses from the drop in GGX Gold's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| GGX Gold vs. GFG Resources | GGX Gold vs. Klondike Gold Corp | GGX Gold vs. Jaguar Mining | GGX Gold vs. Marvel Gold Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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