Correlation Between SpringBig Holdings and SimilarWeb
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and SimilarWeb 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 SimilarWeb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and SimilarWeb, you can compare the effects of market volatilities on SpringBig Holdings and SimilarWeb 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 SimilarWeb. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and SimilarWeb.
Diversification Opportunities for SpringBig Holdings and SimilarWeb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SpringBig and SimilarWeb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb 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 SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and SimilarWeb go up and down completely randomly.
Pair Corralation between SpringBig Holdings and SimilarWeb
If you would invest (100.00) in SpringBig Holdings on December 3, 2024 and sell it today you would earn a total of 100.00 from holding SpringBig Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SpringBig Holdings vs. SimilarWeb
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SimilarWeb |
SpringBig Holdings and SimilarWeb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and SimilarWeb
The main advantage of trading using opposite SpringBig Holdings and SimilarWeb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, SimilarWeb 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 SimilarWeb will offset losses from the drop in SimilarWeb'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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets |