Correlation Between BigBearai Holdings and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Tingyi Holding 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 Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Tingyi Holding Corp, you can compare the effects of market volatilities on BigBearai Holdings and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Tingyi Holding.
Diversification Opportunities for BigBearai Holdings and Tingyi Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and Tingyi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Tingyi Holding go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Tingyi Holding
If you would invest 183.00 in BigBearai Holdings on September 14, 2024 and sell it today you would earn a total of 69.00 from holding BigBearai Holdings or generate 37.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
BigBearai Holdings vs. Tingyi Holding Corp
Performance |
| Timeline |
| BigBearai Holdings |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BigBearai Holdings and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Tingyi Holding
The main advantage of trading using opposite BigBearai Holdings and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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