Correlation Between SpringBig Holdings and Blackline
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Blackline 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 Blackline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Blackline, you can compare the effects of market volatilities on SpringBig Holdings and Blackline 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 Blackline. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Blackline.
Diversification Opportunities for SpringBig Holdings and Blackline
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Blackline is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Blackline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackline 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 Blackline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackline has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Blackline go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Blackline
If you would invest 5,733 in Blackline on August 30, 2024 and sell it today you would earn a total of 455.00 from holding Blackline or generate 7.94% 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. Blackline
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackline |
SpringBig Holdings and Blackline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Blackline
The main advantage of trading using opposite SpringBig Holdings and Blackline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Blackline 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 Blackline will offset losses from the drop in Blackline's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Blackline vs. Manhattan Associates | Blackline vs. Aspen Technology | Blackline vs. DoubleVerify Holdings | Blackline vs. ANSYS Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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