Correlation Between BigBearai Holdings and Odyssey Group
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Odyssey Group 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 Odyssey Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Odyssey Group International, you can compare the effects of market volatilities on BigBearai Holdings and Odyssey Group 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 Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Odyssey Group.
Diversification Opportunities for BigBearai Holdings and Odyssey Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and Odyssey is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern 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 Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Odyssey Group go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Odyssey Group
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 0.53 times more return on investment than Odyssey Group. However, BigBearai Holdings is 1.88 times less risky than Odyssey Group. It trades about 0.07 of its potential returns per unit of risk. Odyssey Group International is currently generating about 0.03 per unit of risk. If you would invest 242.00 in BigBearai Holdings on December 4, 2024 and sell it today you would earn a total of 234.00 from holding BigBearai Holdings or generate 96.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
BigBearai Holdings vs. Odyssey Group International
Performance |
| Timeline |
| BigBearai Holdings |
| Odyssey Group Intern |
BigBearai Holdings and Odyssey Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Odyssey Group
The main advantage of trading using opposite BigBearai Holdings and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Odyssey Group 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 Odyssey Group will offset losses from the drop in Odyssey Group's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Odyssey Group vs. Forza Innovations | Odyssey Group vs. Bioelectronics Corp | Odyssey Group vs. Myomo Inc | Odyssey Group vs. REMSleep 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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