Correlation Between SpringBig Holdings and Model N
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Model N 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 Model N into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Model N, you can compare the effects of market volatilities on SpringBig Holdings and Model N 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 Model N. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Model N.
Diversification Opportunities for SpringBig Holdings and Model N
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SpringBig and Model is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Model N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Model N 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 Model N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Model N has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Model N go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Model N
Given the investment horizon of 90 days SpringBig Holdings is expected to under-perform the Model N. In addition to that, SpringBig Holdings is 3.58 times more volatile than Model N. It trades about -0.05 of its total potential returns per unit of risk. Model N is currently generating about -0.01 per unit of volatility. If you would invest 3,446 in Model N on November 5, 2024 and sell it today you would lose (446.00) from holding Model N or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 32.27% |
| Values | Daily Returns |
SpringBig Holdings vs. Model N
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Model N |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SpringBig Holdings and Model N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Model N
The main advantage of trading using opposite SpringBig Holdings and Model N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Model N 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 Model N will offset losses from the drop in Model N'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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