Correlation Between SpringBig Holdings and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Jacob Internet 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 Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Jacob Internet Fund, you can compare the effects of market volatilities on SpringBig Holdings and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Jacob Internet.
Diversification Opportunities for SpringBig Holdings and Jacob Internet
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Jacob is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Jacob Internet go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Jacob Internet
Assuming the 90 days horizon SpringBig Holdings is expected to generate 11.54 times more return on investment than Jacob Internet. However, SpringBig Holdings is 11.54 times more volatile than Jacob Internet Fund. It trades about 0.05 of its potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.05 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 | Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
SpringBig Holdings vs. Jacob Internet Fund
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jacob Internet |
SpringBig Holdings and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Jacob Internet
The main advantage of trading using opposite SpringBig Holdings and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |