Correlation Between BigBearai Holdings and N Able
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and N Able 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 N Able into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and N Able Inc, you can compare the effects of market volatilities on BigBearai Holdings and N Able 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 N Able. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and N Able.
Diversification Opportunities for BigBearai Holdings and N Able
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and NABL is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and N Able Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Able Inc 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 N Able. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Able Inc has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and N Able go up and down completely randomly.
Pair Corralation between BigBearai Holdings and N Able
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 3.38 times more return on investment than N Able. However, BigBearai Holdings is 3.38 times more volatile than N Able Inc. It trades about 0.21 of its potential returns per unit of risk. N Able Inc is currently generating about -0.4 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. N Able Inc
Performance |
| Timeline |
| BigBearai Holdings |
| N Able Inc |
BigBearai Holdings and N Able Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and N Able
The main advantage of trading using opposite BigBearai Holdings and N Able positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, N Able 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 N Able will offset losses from the drop in N Able's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| N Able vs. ExlService Holdings | N Able vs. ASGN Inc | N Able vs. Parsons Corp | N Able vs. CACI International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |