Correlation Between BigBearai Holdings and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Jollibee Foods 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 Jollibee Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Jollibee Foods, you can compare the effects of market volatilities on BigBearai Holdings and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Jollibee Foods.
Diversification Opportunities for BigBearai Holdings and Jollibee Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and Jollibee is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Jollibee Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Jollibee Foods go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Jollibee Foods
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 3.12 times more return on investment than Jollibee Foods. However, BigBearai Holdings is 3.12 times more volatile than Jollibee Foods. It trades about 0.14 of its potential returns per unit of risk. Jollibee Foods is currently generating about 0.0 per unit of risk. If you would invest 191.00 in BigBearai Holdings on September 13, 2024 and sell it today you would earn a total of 83.00 from holding BigBearai Holdings or generate 43.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
BigBearai Holdings vs. Jollibee Foods
Performance |
| Timeline |
| BigBearai Holdings |
| Jollibee Foods |
BigBearai Holdings and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Jollibee Foods
The main advantage of trading using opposite BigBearai Holdings and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Jollibee Foods vs. Dominos Pizza Group | Jollibee Foods vs. Compass Group PLC | Jollibee Foods vs. The Cheesecake Factory | Jollibee Foods vs. Rave Restaurant Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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