Correlation Between BigBearai Holdings and SEB SA
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and SEB SA 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 BigBearai Holdings and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and SEB SA, you can compare the effects of market volatilities on BigBearai Holdings and SEB SA 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 BigBearai Holdings with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and SEB SA.
Diversification Opportunities for BigBearai Holdings and SEB SA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and SEB is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and BigBearai 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 BigBearai Holdings are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and SEB SA go up and down completely randomly.
Pair Corralation between BigBearai Holdings and SEB SA
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 9.94 times more return on investment than SEB SA. However, BigBearai Holdings is 9.94 times more volatile than SEB SA. It trades about 0.23 of its potential returns per unit of risk. SEB SA is currently generating about -0.17 per unit of risk. If you would invest 196.00 in BigBearai Holdings on September 12, 2024 and sell it today you would earn a total of 102.00 from holding BigBearai Holdings or generate 52.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BigBearai Holdings vs. SEB SA
Performance |
Timeline |
BigBearai Holdings |
SEB SA |
BigBearai Holdings and SEB SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BigBearai Holdings and SEB SA
The main advantage of trading using opposite BigBearai Holdings and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
SEB SA vs. Teleflex Incorporated | SEB SA vs. Valneva SE ADR | SEB SA vs. Viemed Healthcare | SEB SA vs. Fast Retailing Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Money Managers Screen money managers from public funds and ETFs managed around the world |