Correlation Between BigBearai Holdings and 10 Year
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and 10 Year 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 10 Year into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and 10 Year T Note Futures, you can compare the effects of market volatilities on BigBearai Holdings and 10 Year 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 10 Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and 10 Year.
Diversification Opportunities for BigBearai Holdings and 10 Year
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBearai and ZNUSD is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and 10 Year T Note Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10 Year T 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 10 Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10 Year T has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and 10 Year go up and down completely randomly.
Pair Corralation between BigBearai Holdings and 10 Year
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 31.28 times more return on investment than 10 Year. However, BigBearai Holdings is 31.28 times more volatile than 10 Year T Note Futures. It trades about 0.21 of its potential returns per unit of risk. 10 Year T Note Futures is currently generating about -0.04 per unit of risk. If you would invest 158.00 in BigBearai Holdings on November 1, 2024 and sell it today you would earn a total of 255.00 from holding BigBearai Holdings or generate 161.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
BigBearai Holdings vs. 10 Year T Note Futures
Performance |
| Timeline |
| BigBearai Holdings |
| 10 Year T |
BigBearai Holdings and 10 Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and 10 Year
The main advantage of trading using opposite BigBearai Holdings and 10 Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, 10 Year 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 10 Year will offset losses from the drop in 10 Year's long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| 10 Year vs. Mini Dow Jones | 10 Year vs. Rough Rice Futures | 10 Year vs. Platinum | 10 Year vs. Soybean Futures |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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