Correlation Between SpringBig Holdings and Janus Global
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Janus Global 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 Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Janus Global Technology, you can compare the effects of market volatilities on SpringBig Holdings and Janus Global 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 Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Janus Global.
Diversification Opportunities for SpringBig Holdings and Janus Global
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Janus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Janus Global go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Janus Global
Assuming the 90 days horizon SpringBig Holdings is expected to under-perform the Janus Global. In addition to that, SpringBig Holdings is 18.11 times more volatile than Janus Global Technology. It trades about -0.06 of its total potential returns per unit of risk. Janus Global Technology is currently generating about 0.09 per unit of volatility. If you would invest 3,677 in Janus Global Technology on August 31, 2024 and sell it today you would earn a total of 1,886 from holding Janus Global Technology or generate 51.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 6.17% |
| Values | Daily Returns |
SpringBig Holdings vs. Janus Global Technology
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Janus Global Technology |
SpringBig Holdings and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Janus Global
The main advantage of trading using opposite SpringBig Holdings and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Janus Global 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 Janus Global will offset losses from the drop in Janus Global's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Janus Global vs. Icon Financial Fund | Janus Global vs. Blackrock Financial Institutions | Janus Global vs. 1919 Financial Services | Janus Global vs. Angel Oak Financial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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