Correlation Between SpringBig Holdings and Enfusion
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Enfusion 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 SpringBig Holdings and Enfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Enfusion, you can compare the effects of market volatilities on SpringBig Holdings and Enfusion 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 SpringBig Holdings with a short position of Enfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Enfusion.
Diversification Opportunities for SpringBig Holdings and Enfusion
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SpringBig and Enfusion is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and SpringBig 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 SpringBig Holdings are associated (or correlated) with Enfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enfusion has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Enfusion go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Enfusion
If you would invest 947.00 in Enfusion on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Enfusion or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
SpringBig Holdings vs. Enfusion
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enfusion |
SpringBig Holdings and Enfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Enfusion
The main advantage of trading using opposite SpringBig Holdings and Enfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Enfusion 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 Enfusion will offset losses from the drop in Enfusion's long position.| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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