Correlation Between SoundHound and SpringBig Holdings
Can any of the company-specific risk be diversified away by investing in both SoundHound and SpringBig 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 SoundHound and SpringBig Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and SpringBig Holdings, you can compare the effects of market volatilities on SoundHound and SpringBig 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 SoundHound with a short position of SpringBig Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and SpringBig Holdings.
Diversification Opportunities for SoundHound and SpringBig Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoundHound and SpringBig is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and SpringBig Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringBig Holdings and SoundHound 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 SoundHound AI are associated (or correlated) with SpringBig Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringBig Holdings has no effect on the direction of SoundHound i.e., SoundHound and SpringBig Holdings go up and down completely randomly.
Pair Corralation between SoundHound and SpringBig Holdings
Assuming the 90 days horizon SoundHound AI is expected to generate 0.89 times more return on investment than SpringBig Holdings. However, SoundHound AI is 1.13 times less risky than SpringBig Holdings. It trades about 0.09 of its potential returns per unit of risk. SpringBig Holdings is currently generating about 0.02 per unit of risk. If you would invest 21.00 in SoundHound AI on October 19, 2024 and sell it today you would earn a total of 879.00 from holding SoundHound AI or generate 4185.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.64% |
| Values | Daily Returns |
SoundHound AI vs. SpringBig Holdings
Performance |
| Timeline |
| SoundHound AI |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoundHound and SpringBig Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoundHound and SpringBig Holdings
The main advantage of trading using opposite SoundHound and SpringBig Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, SpringBig 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 SpringBig Holdings will offset losses from the drop in SpringBig Holdings' long position.| SoundHound vs. BigBearai Holdings, WT | SoundHound vs. Dave Warrants | SoundHound vs. Swvl Holdings Corp | SoundHound vs. Guardforce AI Co |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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