Correlation Between Clearwater Analytics and SpringBig Holdings
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and SpringBig 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 Clearwater Analytics and SpringBig Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and SpringBig Holdings, you can compare the effects of market volatilities on Clearwater Analytics and SpringBig 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 Clearwater Analytics with a short position of SpringBig Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and SpringBig Holdings.
Diversification Opportunities for Clearwater Analytics and SpringBig Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearwater and SpringBig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and SpringBig Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringBig Holdings and Clearwater Analytics 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 Clearwater Analytics Holdings are associated (or correlated) with SpringBig Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringBig Holdings has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and SpringBig Holdings go up and down completely randomly.
Pair Corralation between Clearwater Analytics and SpringBig Holdings
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.29 times more return on investment than SpringBig Holdings. However, Clearwater Analytics Holdings is 3.41 times less risky than SpringBig Holdings. It trades about 0.05 of its potential returns per unit of risk. SpringBig Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,899 in Clearwater Analytics Holdings on November 5, 2024 and sell it today you would earn a total of 917.00 from holding Clearwater Analytics Holdings or generate 48.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.47% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. SpringBig Holdings
Performance |
| Timeline |
| Clearwater Analytics |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clearwater Analytics and SpringBig Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and SpringBig Holdings
The main advantage of trading using opposite Clearwater Analytics and SpringBig Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, SpringBig 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 SpringBig Holdings will offset losses from the drop in SpringBig Holdings' long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Paycor HCM |
| SpringBig Holdings vs. OLB Group | SpringBig Holdings vs. Friendable | SpringBig Holdings vs. LifeSpeak | SpringBig Holdings vs. Creative Realities |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |