Correlation Between BigBearai Holdings and Charles
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By analyzing existing cross correlation between BigBearai Holdings and Charles River Laboratories, you can compare the effects of market volatilities on BigBearai Holdings and Charles 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 Charles. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Charles.
Diversification Opportunities for BigBearai Holdings and Charles
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and Charles is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Charles River Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charles River Labora 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 Charles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charles River Labora has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Charles go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Charles
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 20.83 times more return on investment than Charles. However, BigBearai Holdings is 20.83 times more volatile than Charles River Laboratories. It trades about 0.23 of its potential returns per unit of risk. Charles River Laboratories is currently generating about -0.12 per unit of risk. If you would invest 182.00 in BigBearai Holdings on September 13, 2024 and sell it today you would earn a total of 92.00 from holding BigBearai Holdings or generate 50.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
BigBearai Holdings vs. Charles River Laboratories
Performance |
| Timeline |
| BigBearai Holdings |
| Charles River Labora |
BigBearai Holdings and Charles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Charles
The main advantage of trading using opposite BigBearai Holdings and Charles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Charles 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 Charles will offset losses from the drop in Charles' long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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