Correlation Between SpringBig Holdings and Baron Select
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Baron Select 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 Select 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 Select Funds, you can compare the effects of market volatilities on SpringBig Holdings and Baron Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Baron Select.
Diversification Opportunities for SpringBig Holdings and Baron Select
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Baron is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Baron Select go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Baron Select
Assuming the 90 days horizon SpringBig Holdings is expected to generate 14.26 times more return on investment than Baron Select. However, SpringBig Holdings is 14.26 times more volatile than Baron Select Funds. It trades about 0.05 of its potential returns per unit of risk. Baron Select Funds is currently generating about 0.11 per unit of risk. If you would invest 5.00 in SpringBig Holdings on August 29, 2024 and sell it today you would lose (3.80) from holding SpringBig Holdings or give up 76.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
SpringBig Holdings vs. Baron Select Funds
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron Select Funds |
SpringBig Holdings and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Baron Select
The main advantage of trading using opposite SpringBig Holdings and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Baron Select 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 Select will offset losses from the drop in Baron Select'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 Select vs. Franklin Federal Limited Term | Baron Select vs. Federated Short Intermediate Duration | Baron Select vs. Locorr Longshort Modities | Baron Select vs. Vanguard Short Term Federal |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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