Correlation Between SpringBig Holdings and Baron Fintech
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Baron Fintech 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 Baron Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Baron Fintech, you can compare the effects of market volatilities on SpringBig Holdings and Baron Fintech 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 Baron Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Baron Fintech.
Diversification Opportunities for SpringBig Holdings and Baron Fintech
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SpringBig and Baron is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Baron Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Fintech 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 Baron Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Fintech has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Baron Fintech go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Baron Fintech
If you would invest 1,694 in Baron Fintech on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Baron Fintech or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
SpringBig Holdings vs. Baron Fintech
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron Fintech |
SpringBig Holdings and Baron Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Baron Fintech
The main advantage of trading using opposite SpringBig Holdings and Baron Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Baron Fintech 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 Baron Fintech will offset losses from the drop in Baron Fintech's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Baron Fintech vs. Siit High Yield | Baron Fintech vs. Western Asset High | Baron Fintech vs. Strategic Allocation Aggressive | Baron Fintech vs. Pace High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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