Correlation Between Hackett and BigBearai Holdings
Can any of the company-specific risk be diversified away by investing in both Hackett 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 Hackett and BigBearai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hackett Group and BigBearai Holdings, you can compare the effects of market volatilities on Hackett 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 Hackett with a short position of BigBearai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and BigBearai Holdings.
Diversification Opportunities for Hackett and BigBearai Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hackett and BigBearai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and Hackett 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 The Hackett Group 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 Hackett i.e., Hackett and BigBearai Holdings go up and down completely randomly.
Pair Corralation between Hackett and BigBearai Holdings
Given the investment horizon of 90 days Hackett is expected to generate 1.13 times less return on investment than BigBearai Holdings. But when comparing it to its historical volatility, The Hackett Group is 1.71 times less risky than BigBearai Holdings. It trades about 0.29 of its potential returns per unit of risk. BigBearai Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 168.00 in BigBearai Holdings on August 31, 2024 and sell it today you would earn a total of 47.00 from holding BigBearai Holdings or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hackett Group vs. BigBearai Holdings
Performance |
| Timeline |
| Hackett Group |
| BigBearai Holdings |
Hackett and BigBearai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and BigBearai Holdings
The main advantage of trading using opposite Hackett and BigBearai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett 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.| Hackett vs. Innodata | Hackett vs. International Business Machines | Hackett vs. Aurora Innovation | Hackett vs. BigBearai Holdings |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance |