Correlation Between Bigcommerce Holdings and Ontrak
Can any of the company-specific risk be diversified away by investing in both Bigcommerce Holdings and Ontrak 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 Bigcommerce Holdings and Ontrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bigcommerce Holdings and Ontrak Inc, you can compare the effects of market volatilities on Bigcommerce Holdings and Ontrak 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 Bigcommerce Holdings with a short position of Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bigcommerce Holdings and Ontrak.
Diversification Opportunities for Bigcommerce Holdings and Ontrak
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bigcommerce and Ontrak is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bigcommerce Holdings and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc and Bigcommerce 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 Bigcommerce Holdings are associated (or correlated) with Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Bigcommerce Holdings i.e., Bigcommerce Holdings and Ontrak go up and down completely randomly.
Pair Corralation between Bigcommerce Holdings and Ontrak
Given the investment horizon of 90 days Bigcommerce Holdings is expected to generate 0.35 times more return on investment than Ontrak. However, Bigcommerce Holdings is 2.83 times less risky than Ontrak. It trades about 0.02 of its potential returns per unit of risk. Ontrak Inc is currently generating about -0.04 per unit of risk. If you would invest 704.00 in Bigcommerce Holdings on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Bigcommerce Holdings or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bigcommerce Holdings vs. Ontrak Inc
Performance |
| Timeline |
| Bigcommerce Holdings |
| Ontrak Inc |
Bigcommerce Holdings and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bigcommerce Holdings and Ontrak
The main advantage of trading using opposite Bigcommerce Holdings and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bigcommerce Holdings position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.| Bigcommerce Holdings vs. nCino Inc | Bigcommerce Holdings vs. ZoomInfo Technologies | Bigcommerce Holdings vs. Gitlab Inc | Bigcommerce Holdings vs. MondayCom |
| Ontrak vs. American Well Corp | Ontrak vs. Root Inc | Ontrak vs. Goodrx Holdings | Ontrak vs. Bigcommerce 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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