Correlation Between BigBearai Holdings and InMode
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and InMode 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 InMode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and InMode, you can compare the effects of market volatilities on BigBearai Holdings and InMode 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 InMode. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and InMode.
Diversification Opportunities for BigBearai Holdings and InMode
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BigBearai and InMode is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode 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 InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and InMode go up and down completely randomly.
Pair Corralation between BigBearai Holdings and InMode
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 4.07 times more return on investment than InMode. However, BigBearai Holdings is 4.07 times more volatile than InMode. It trades about 0.28 of its potential returns per unit of risk. InMode is currently generating about -0.05 per unit of risk. If you would invest 182.00 in BigBearai Holdings on September 13, 2024 and sell it today you would earn a total of 116.00 from holding BigBearai Holdings or generate 63.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. InMode
Performance |
| Timeline |
| BigBearai Holdings |
| InMode |
BigBearai Holdings and InMode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and InMode
The main advantage of trading using opposite BigBearai Holdings and InMode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, InMode 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 InMode will offset losses from the drop in InMode's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Inari Medical | InMode vs. Insulet |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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