Correlation Between BigBearai Holdings and CARPENTER
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By analyzing existing cross correlation between BigBearai Holdings and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on BigBearai Holdings and CARPENTER 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 CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and CARPENTER.
Diversification Opportunities for BigBearai Holdings and CARPENTER
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BigBearai and CARPENTER is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY 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 CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and CARPENTER go up and down completely randomly.
Pair Corralation between BigBearai Holdings and CARPENTER
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 46.38 times more return on investment than CARPENTER. However, BigBearai Holdings is 46.38 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.23 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about -0.07 per unit of risk. If you would invest 206.00 in BigBearai Holdings on September 20, 2024 and sell it today you would earn a total of 107.00 from holding BigBearai Holdings or generate 51.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BigBearai Holdings vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| BigBearai Holdings |
| CARPENTER TECHNOLOGY |
BigBearai Holdings and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and CARPENTER
The main advantage of trading using opposite BigBearai Holdings and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| CARPENTER vs. AEP TEX INC | CARPENTER vs. US BANK NATIONAL | CARPENTER vs. Applied Blockchain | CARPENTER vs. BigBearai 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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