Correlation Between SpringBig Holdings and Ivy Science
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Ivy Science 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 Ivy Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Ivy Science And, you can compare the effects of market volatilities on SpringBig Holdings and Ivy Science 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 Ivy Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Ivy Science.
Diversification Opportunities for SpringBig Holdings and Ivy Science
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and Ivy is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Ivy Science And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Science And 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 Ivy Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Science And has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Ivy Science go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Ivy Science
Assuming the 90 days horizon SpringBig Holdings is expected to generate 14.62 times more return on investment than Ivy Science. However, SpringBig Holdings is 14.62 times more volatile than Ivy Science And. It trades about 0.03 of its potential returns per unit of risk. Ivy Science And is currently generating about 0.07 per unit of risk. If you would invest 8.00 in SpringBig Holdings on August 30, 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 | 24.8% |
| Values | Daily Returns |
SpringBig Holdings vs. Ivy Science And
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ivy Science And |
SpringBig Holdings and Ivy Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Ivy Science
The main advantage of trading using opposite SpringBig Holdings and Ivy Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Ivy Science 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 Ivy Science will offset losses from the drop in Ivy Science's long position.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Ivy Science vs. Alliancebernstein National Municipal | Ivy Science vs. Oklahoma Municipal Fund | Ivy Science vs. Nebraska Municipal Fund | Ivy Science vs. T Rowe Price |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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