Correlation Between MicroAlgo and Bakkt Holdings
Can any of the company-specific risk be diversified away by investing in both MicroAlgo and Bakkt 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 MicroAlgo and Bakkt Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroAlgo and Bakkt Holdings, you can compare the effects of market volatilities on MicroAlgo and Bakkt 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 MicroAlgo with a short position of Bakkt Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroAlgo and Bakkt Holdings.
Diversification Opportunities for MicroAlgo and Bakkt Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MicroAlgo and Bakkt is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo and Bakkt Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bakkt Holdings and MicroAlgo 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 MicroAlgo are associated (or correlated) with Bakkt Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bakkt Holdings has no effect on the direction of MicroAlgo i.e., MicroAlgo and Bakkt Holdings go up and down completely randomly.
Pair Corralation between MicroAlgo and Bakkt Holdings
Given the investment horizon of 90 days MicroAlgo is expected to under-perform the Bakkt Holdings. But the stock apears to be less risky and, when comparing its historical volatility, MicroAlgo is 1.12 times less risky than Bakkt Holdings. The stock trades about -0.38 of its potential returns per unit of risk. The Bakkt Holdings is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 2,711 in Bakkt Holdings on November 4, 2024 and sell it today you would lose (955.00) from holding Bakkt Holdings or give up 35.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MicroAlgo vs. Bakkt Holdings
Performance |
| Timeline |
| MicroAlgo |
| Bakkt Holdings |
MicroAlgo and Bakkt Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroAlgo and Bakkt Holdings
The main advantage of trading using opposite MicroAlgo and Bakkt Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroAlgo position performs unexpectedly, Bakkt 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 Bakkt Holdings will offset losses from the drop in Bakkt Holdings' long position.| MicroAlgo vs. NetScout Systems | MicroAlgo vs. Consensus Cloud Solutions | MicroAlgo vs. CSG Systems International | MicroAlgo vs. Evertec |
| Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. GigaCloud Technology Class | Bakkt Holdings vs. Pagaya Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |