Correlation Between Soluna Holdings and BigBearai Holdings
Can any of the company-specific risk be diversified away by investing in both Soluna Holdings 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 Soluna Holdings and BigBearai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soluna Holdings and BigBearai Holdings, you can compare the effects of market volatilities on Soluna Holdings 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 Soluna Holdings with a short position of BigBearai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soluna Holdings and BigBearai Holdings.
Diversification Opportunities for Soluna Holdings and BigBearai Holdings
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Soluna and BigBearai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Soluna Holdings and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and Soluna 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 Soluna Holdings 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 Soluna Holdings i.e., Soluna Holdings and BigBearai Holdings go up and down completely randomly.
Pair Corralation between Soluna Holdings and BigBearai Holdings
Given the investment horizon of 90 days Soluna Holdings is expected to under-perform the BigBearai Holdings. In addition to that, Soluna Holdings is 1.22 times more volatile than BigBearai Holdings. It trades about -0.04 of its total potential returns per unit of risk. BigBearai Holdings is currently generating about 0.24 per unit of volatility. If you would invest 160.00 in BigBearai Holdings on August 24, 2024 and sell it today you would earn a total of 59.00 from holding BigBearai Holdings or generate 36.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soluna Holdings vs. BigBearai Holdings
Performance |
| Timeline |
| Soluna Holdings |
| BigBearai Holdings |
Soluna Holdings and BigBearai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soluna Holdings and BigBearai Holdings
The main advantage of trading using opposite Soluna Holdings and BigBearai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soluna Holdings 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.| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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