Correlation Between BigBearai Holdings and VERTICAL
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By analyzing existing cross correlation between BigBearai Holdings and VERTICAL HOLDCO GMBH, you can compare the effects of market volatilities on BigBearai Holdings and VERTICAL 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 VERTICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and VERTICAL.
Diversification Opportunities for BigBearai Holdings and VERTICAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and VERTICAL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and VERTICAL HOLDCO GMBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERTICAL HOLDCO GMBH 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 VERTICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERTICAL HOLDCO GMBH has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and VERTICAL go up and down completely randomly.
Pair Corralation between BigBearai Holdings and VERTICAL
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 4.53 times more return on investment than VERTICAL. However, BigBearai Holdings is 4.53 times more volatile than VERTICAL HOLDCO GMBH. It trades about 0.27 of its potential returns per unit of risk. VERTICAL HOLDCO GMBH is currently generating about -0.26 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 116.00 from holding BigBearai Holdings or generate 63.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
BigBearai Holdings vs. VERTICAL HOLDCO GMBH
Performance |
| Timeline |
| BigBearai Holdings |
| VERTICAL HOLDCO GMBH |
BigBearai Holdings and VERTICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and VERTICAL
The main advantage of trading using opposite BigBearai Holdings and VERTICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, VERTICAL 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 VERTICAL will offset losses from the drop in VERTICAL's 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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