Correlation Between Bakkt Holdings and MicroAlgo
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and MicroAlgo 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 MicroAlgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakkt Holdings and MicroAlgo, you can compare the effects of market volatilities on Bakkt Holdings and MicroAlgo 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 MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and MicroAlgo.
Diversification Opportunities for Bakkt Holdings and MicroAlgo
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bakkt and MicroAlgo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and MicroAlgo go up and down completely randomly.
Pair Corralation between Bakkt Holdings and MicroAlgo
Given the investment horizon of 90 days Bakkt Holdings is expected to generate 3.14 times less return on investment than MicroAlgo. But when comparing it to its historical volatility, Bakkt Holdings is 3.61 times less risky than MicroAlgo. It trades about 0.04 of its potential returns per unit of risk. MicroAlgo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,920 in MicroAlgo on October 24, 2024 and sell it today you would lose (8,760) from holding MicroAlgo or give up 98.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakkt Holdings vs. MicroAlgo
Performance |
| Timeline |
| Bakkt Holdings |
| MicroAlgo |
Bakkt Holdings and MicroAlgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakkt Holdings and MicroAlgo
The main advantage of trading using opposite Bakkt Holdings and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, MicroAlgo 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 MicroAlgo will offset losses from the drop in MicroAlgo's long position.| Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. GigaCloud Technology Class | Bakkt Holdings vs. Pagaya Technologies |
| MicroAlgo vs. NetScout Systems | MicroAlgo vs. Consensus Cloud Solutions | MicroAlgo vs. CSG Systems International | MicroAlgo vs. Evertec |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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