Correlation Between SB Technology and BigBearai Holdings
Can any of the company-specific risk be diversified away by investing in both SB Technology and BigBearai Holdings 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 SB Technology and BigBearai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SB Technology Corp and BigBearai Holdings, you can compare the effects of market volatilities on SB Technology and BigBearai Holdings 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 SB Technology with a short position of BigBearai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SB Technology and BigBearai Holdings.
Diversification Opportunities for SB Technology and BigBearai Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SFBTF and BigBearai is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SB Technology Corp and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and SB Technology 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 SB Technology Corp are associated (or correlated) with BigBearai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBearai Holdings has no effect on the direction of SB Technology i.e., SB Technology and BigBearai Holdings go up and down completely randomly.
Pair Corralation between SB Technology and BigBearai Holdings
If you would invest 173.00 in BigBearai Holdings on August 27, 2024 and sell it today you would earn a total of 52.00 from holding BigBearai Holdings or generate 30.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SB Technology Corp vs. BigBearai Holdings
Performance |
| Timeline |
| SB Technology Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BigBearai Holdings |
SB Technology and BigBearai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SB Technology and BigBearai Holdings
The main advantage of trading using opposite SB Technology and BigBearai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SB Technology position performs unexpectedly, BigBearai Holdings 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 BigBearai Holdings will offset losses from the drop in BigBearai Holdings' long position.| SB Technology vs. CLPS Inc | SB Technology vs. Xalles Holdings | SB Technology vs. SEATech Ventures Corp | SB Technology vs. Soluna Holdings |
| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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