Correlation Between GDS Holdings and BigBearai Holdings
Can any of the company-specific risk be diversified away by investing in both GDS Holdings and BigBearai 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 GDS Holdings and BigBearai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDS Holdings and BigBearai Holdings, you can compare the effects of market volatilities on GDS Holdings and BigBearai 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 GDS Holdings with a short position of BigBearai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDS Holdings and BigBearai Holdings.
Diversification Opportunities for GDS Holdings and BigBearai Holdings
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GDS and BigBearai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding GDS Holdings and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and GDS 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 GDS Holdings are associated (or correlated) with BigBearai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBearai Holdings has no effect on the direction of GDS Holdings i.e., GDS Holdings and BigBearai Holdings go up and down completely randomly.
Pair Corralation between GDS Holdings and BigBearai Holdings
Considering the 90-day investment horizon GDS Holdings is expected to under-perform the BigBearai Holdings. But the stock apears to be less risky and, when comparing its historical volatility, GDS Holdings is 1.27 times less risky than BigBearai Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The BigBearai Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 453.00 in BigBearai Holdings on November 4, 2024 and sell it today you would lose (29.00) from holding BigBearai Holdings or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GDS Holdings vs. BigBearai Holdings
Performance |
| Timeline |
| GDS Holdings |
| BigBearai Holdings |
GDS Holdings and BigBearai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDS Holdings and BigBearai Holdings
The main advantage of trading using opposite GDS Holdings and BigBearai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDS Holdings position performs unexpectedly, BigBearai 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 BigBearai Holdings will offset losses from the drop in BigBearai Holdings' long position.| GDS Holdings vs. ExlService Holdings | GDS Holdings vs. Gartner | GDS Holdings vs. VNET Group DRC | GDS Holdings vs. CLARIVATE PLC |
| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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