Correlation Between BigBearai Holdings and AMAZON
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By analyzing existing cross correlation between BigBearai Holdings and AMAZON INC 52, you can compare the effects of market volatilities on BigBearai Holdings and AMAZON 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 AMAZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and AMAZON.
Diversification Opportunities for BigBearai Holdings and AMAZON
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BigBearai and AMAZON is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and AMAZON INC 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZON INC 52 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 AMAZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZON INC 52 has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and AMAZON go up and down completely randomly.
Pair Corralation between BigBearai Holdings and AMAZON
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 33.44 times more return on investment than AMAZON. However, BigBearai Holdings is 33.44 times more volatile than AMAZON INC 52. It trades about 0.31 of its potential returns per unit of risk. AMAZON INC 52 is currently generating about -0.03 per unit of risk. If you would invest 171.00 in BigBearai Holdings on September 14, 2024 and sell it today you would earn a total of 127.00 from holding BigBearai Holdings or generate 74.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. AMAZON INC 52
Performance |
| Timeline |
| BigBearai Holdings |
| AMAZON INC 52 |
BigBearai Holdings and AMAZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and AMAZON
The main advantage of trading using opposite BigBearai Holdings and AMAZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, AMAZON 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 AMAZON will offset losses from the drop in AMAZON's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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