Correlation Between Bakkt Holdings and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and Grab Holdings 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 Bakkt Holdings and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakkt Holdings Warrant and Grab Holdings Limited, you can compare the effects of market volatilities on Bakkt Holdings and Grab Holdings 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 Bakkt Holdings with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and Grab Holdings.
Diversification Opportunities for Bakkt Holdings and Grab Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bakkt and Grab is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings Warrant and Grab Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings Limited and Bakkt 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 Bakkt Holdings Warrant are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings Limited has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Grab Holdings go up and down completely randomly.
Pair Corralation between Bakkt Holdings and Grab Holdings
Assuming the 90 days trading horizon Bakkt Holdings Warrant is expected to generate 6.08 times more return on investment than Grab Holdings. However, Bakkt Holdings is 6.08 times more volatile than Grab Holdings Limited. It trades about 0.24 of its potential returns per unit of risk. Grab Holdings Limited is currently generating about 0.19 per unit of risk. If you would invest 9.00 in Bakkt Holdings Warrant on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Bakkt Holdings Warrant or generate 366.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bakkt Holdings Warrant vs. Grab Holdings Limited
Performance |
| Timeline |
| Bakkt Holdings Warrant |
| Grab Holdings Limited |
Bakkt Holdings and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakkt Holdings and Grab Holdings
The main advantage of trading using opposite Bakkt Holdings and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| Bakkt Holdings vs. Copa Holdings SA | Bakkt Holdings vs. United Airlines Holdings | Bakkt Holdings vs. Delta Air Lines | Bakkt Holdings vs. SkyWest |
| Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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