Correlation Between SpringBig Holdings and Putnam Global
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Putnam 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 Putnam 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 Putnam Global Technology, you can compare the effects of market volatilities on SpringBig Holdings and Putnam 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Putnam Global.
Diversification Opportunities for SpringBig Holdings and Putnam Global
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Putnam is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Putnam Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Technology has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Putnam Global go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Putnam Global
Assuming the 90 days horizon SpringBig Holdings is expected to generate 17.05 times more return on investment than Putnam Global. However, SpringBig Holdings is 17.05 times more volatile than Putnam Global Technology. It trades about 0.03 of its potential returns per unit of risk. Putnam Global Technology is currently generating about 0.11 per unit of risk. If you would invest 8.00 in SpringBig Holdings on September 2, 2024 and sell it today you would lose (6.80) from holding SpringBig Holdings or give up 85.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 24.6% |
| Values | Daily Returns |
SpringBig Holdings vs. Putnam Global Technology
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Putnam Global Technology |
SpringBig Holdings and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Putnam Global
The main advantage of trading using opposite SpringBig Holdings and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Putnam 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 Putnam Global will offset losses from the drop in Putnam 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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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