Correlation Between BigBearai Holdings and UNITED
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By analyzing existing cross correlation between BigBearai Holdings and UNITED STS STL, you can compare the effects of market volatilities on BigBearai Holdings and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and UNITED.
Diversification Opportunities for BigBearai Holdings and UNITED
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and UNITED is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and UNITED STS STL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED STS STL 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED STS STL has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and UNITED go up and down completely randomly.
Pair Corralation between BigBearai Holdings and UNITED
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 5.45 times more return on investment than UNITED. However, BigBearai Holdings is 5.45 times more volatile than UNITED STS STL. It trades about 0.23 of its potential returns per unit of risk. UNITED STS STL is currently generating about 0.08 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BigBearai Holdings vs. UNITED STS STL
Performance |
| Timeline |
| BigBearai Holdings |
| UNITED STS STL |
BigBearai Holdings and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and UNITED
The main advantage of trading using opposite BigBearai Holdings and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| UNITED vs. Molson Coors Brewing | UNITED vs. Fluent Inc | UNITED vs. Fomento Economico Mexicano | UNITED vs. Boston Beer |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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