Correlation Between SpringBig Holdings and NCino
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and NCino 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 NCino into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and nCino Inc, you can compare the effects of market volatilities on SpringBig Holdings and NCino 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 NCino. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and NCino.
Diversification Opportunities for SpringBig Holdings and NCino
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SpringBig and NCino is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc 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 NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and NCino go up and down completely randomly.
Pair Corralation between SpringBig Holdings and NCino
Assuming the 90 days horizon SpringBig Holdings is expected to generate 7.42 times more return on investment than NCino. However, SpringBig Holdings is 7.42 times more volatile than nCino Inc. It trades about 0.05 of its potential returns per unit of risk. nCino Inc is currently generating about 0.05 per unit of risk. If you would invest 6.00 in SpringBig Holdings on August 24, 2024 and sell it today you would lose (4.80) from holding SpringBig Holdings or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 25.2% |
| Values | Daily Returns |
SpringBig Holdings vs. nCino Inc
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| nCino Inc |
SpringBig Holdings and NCino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and NCino
The main advantage of trading using opposite SpringBig Holdings and NCino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, NCino 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 NCino will offset losses from the drop in NCino's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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