Correlation Between Bakkt Holdings and Mogo
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and Mogo 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 Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakkt Holdings and Mogo Inc, you can compare the effects of market volatilities on Bakkt Holdings and Mogo 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 Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and Mogo.
Diversification Opportunities for Bakkt Holdings and Mogo
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bakkt and Mogo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc 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 Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Mogo go up and down completely randomly.
Pair Corralation between Bakkt Holdings and Mogo
Given the investment horizon of 90 days Bakkt Holdings is expected to generate 4.51 times more return on investment than Mogo. However, Bakkt Holdings is 4.51 times more volatile than Mogo Inc. It trades about 0.16 of its potential returns per unit of risk. Mogo Inc is currently generating about 0.11 per unit of risk. If you would invest 986.00 in Bakkt Holdings on August 28, 2024 and sell it today you would earn a total of 1,815 from holding Bakkt Holdings or generate 184.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakkt Holdings vs. Mogo Inc
Performance |
| Timeline |
| Bakkt Holdings |
| Mogo Inc |
Bakkt Holdings and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakkt Holdings and Mogo
The main advantage of trading using opposite Bakkt Holdings and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.| Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. Edgio Inc | Bakkt Holdings vs. GigaCloud Technology Class |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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