Correlation Between BigBearai Holdings and International Business
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and International Business 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 International Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and International Business Machines, you can compare the effects of market volatilities on BigBearai Holdings and International Business 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 International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and International Business.
Diversification Opportunities for BigBearai Holdings and International Business
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BigBearai and International is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and International Business go up and down completely randomly.
Pair Corralation between BigBearai Holdings and International Business
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 4.95 times more return on investment than International Business. However, BigBearai Holdings is 4.95 times more volatile than International Business Machines. It trades about 0.21 of its potential returns per unit of risk. International Business Machines is currently generating about 0.22 per unit of risk. If you would invest 173.00 in BigBearai Holdings on August 28, 2024 and sell it today you would earn a total of 52.00 from holding BigBearai Holdings or generate 30.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BigBearai Holdings vs. International Business Machine
Performance |
| Timeline |
| BigBearai Holdings |
| International Business |
BigBearai Holdings and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and International Business
The main advantage of trading using opposite BigBearai Holdings and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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