Correlation Between BigBearai Holdings and Voestalpine
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Voestalpine at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BigBearai Holdings and Voestalpine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Voestalpine AG PK, you can compare the effects of market volatilities on BigBearai Holdings and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Voestalpine.
Diversification Opportunities for BigBearai Holdings and Voestalpine
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and Voestalpine is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Voestalpine AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine AG PK 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG PK has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Voestalpine go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Voestalpine
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 5.46 times more return on investment than Voestalpine. However, BigBearai Holdings is 5.46 times more volatile than Voestalpine AG PK. It trades about 0.33 of its potential returns per unit of risk. Voestalpine AG PK is currently generating about 0.0 per unit of risk. If you would invest 176.00 in BigBearai Holdings on September 19, 2024 and sell it today you would earn a total of 164.00 from holding BigBearai Holdings or generate 93.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BigBearai Holdings vs. Voestalpine AG PK
Performance |
| Timeline |
| BigBearai Holdings |
| Voestalpine AG PK |
BigBearai Holdings and Voestalpine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and Voestalpine
The main advantage of trading using opposite BigBearai Holdings and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| Voestalpine vs. ArcelorMittal SA ADR | Voestalpine vs. Gerdau SA ADR | Voestalpine vs. POSCO Holdings | Voestalpine vs. HUMANA INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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