Correlation Between Bakkt Holdings and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and Indie Semiconductor 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 Indie Semiconductor 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 Indie Semiconductor Warrant, you can compare the effects of market volatilities on Bakkt Holdings and Indie Semiconductor 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 Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and Indie Semiconductor.
Diversification Opportunities for Bakkt Holdings and Indie Semiconductor
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bakkt and Indie is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings Warrant and Indie Semiconductor Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indie Semiconductor 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 Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indie Semiconductor has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Indie Semiconductor go up and down completely randomly.
Pair Corralation between Bakkt Holdings and Indie Semiconductor
If you would invest 9.00 in Bakkt Holdings Warrant on August 29, 2024 and sell it today you would earn a total of 32.00 from holding Bakkt Holdings Warrant or generate 355.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bakkt Holdings Warrant vs. Indie Semiconductor Warrant
Performance |
| Timeline |
| Bakkt Holdings Warrant |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bakkt Holdings and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakkt Holdings and Indie Semiconductor
The main advantage of trading using opposite Bakkt Holdings and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, Indie Semiconductor 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.| Bakkt Holdings vs. Copa Holdings SA | Bakkt Holdings vs. United Airlines Holdings | Bakkt Holdings vs. Delta Air Lines | Bakkt Holdings vs. SkyWest |
| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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