Correlation Between BigBearai Holdings and KENNAMETAL
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By analyzing existing cross correlation between BigBearai Holdings and KENNAMETAL INC 4625, you can compare the effects of market volatilities on BigBearai Holdings and KENNAMETAL 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 KENNAMETAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and KENNAMETAL.
Diversification Opportunities for BigBearai Holdings and KENNAMETAL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and KENNAMETAL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and KENNAMETAL INC 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 4625 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 KENNAMETAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC 4625 has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and KENNAMETAL go up and down completely randomly.
Pair Corralation between BigBearai Holdings and KENNAMETAL
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 18.7 times more return on investment than KENNAMETAL. However, BigBearai Holdings is 18.7 times more volatile than KENNAMETAL INC 4625. It trades about 0.06 of its potential returns per unit of risk. KENNAMETAL INC 4625 is currently generating about 0.01 per unit of risk. If you would invest 74.00 in BigBearai Holdings on September 12, 2024 and sell it today you would earn a total of 237.00 from holding BigBearai Holdings or generate 320.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.69% |
| Values | Daily Returns |
BigBearai Holdings vs. KENNAMETAL INC 4625
Performance |
| Timeline |
| BigBearai Holdings |
| KENNAMETAL INC 4625 |
BigBearai Holdings and KENNAMETAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and KENNAMETAL
The main advantage of trading using opposite BigBearai Holdings and KENNAMETAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, KENNAMETAL 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 KENNAMETAL will offset losses from the drop in KENNAMETAL'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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