Correlation Between Varonis Systems and Bakkt Holdings
Can any of the company-specific risk be diversified away by investing in both Varonis Systems and Bakkt 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 Varonis Systems and Bakkt Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varonis Systems and Bakkt Holdings, you can compare the effects of market volatilities on Varonis Systems and Bakkt 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 Varonis Systems with a short position of Bakkt Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varonis Systems and Bakkt Holdings.
Diversification Opportunities for Varonis Systems and Bakkt Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Varonis and Bakkt is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Varonis Systems and Bakkt Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bakkt Holdings and Varonis Systems 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 Varonis Systems are associated (or correlated) with Bakkt Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bakkt Holdings has no effect on the direction of Varonis Systems i.e., Varonis Systems and Bakkt Holdings go up and down completely randomly.
Pair Corralation between Varonis Systems and Bakkt Holdings
Given the investment horizon of 90 days Varonis Systems is expected to under-perform the Bakkt Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Varonis Systems is 11.99 times less risky than Bakkt Holdings. The stock trades about -0.2 of its potential returns per unit of risk. The Bakkt Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,168 in Bakkt Holdings on August 28, 2024 and sell it today you would earn a total of 1,633 from holding Bakkt Holdings or generate 139.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varonis Systems vs. Bakkt Holdings
Performance |
| Timeline |
| Varonis Systems |
| Bakkt Holdings |
Varonis Systems and Bakkt Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varonis Systems and Bakkt Holdings
The main advantage of trading using opposite Varonis Systems and Bakkt Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varonis Systems position performs unexpectedly, Bakkt 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 Bakkt Holdings will offset losses from the drop in Bakkt Holdings' long position.| Varonis Systems vs. GigaCloud Technology Class | Varonis Systems vs. Arqit Quantum | Varonis Systems vs. Cemtrex | Varonis Systems vs. Paysafe |
| Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. Edgio Inc | Bakkt Holdings vs. GigaCloud Technology Class |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |