Correlation Between Bigcommerce Holdings and Model N

Can any of the company-specific risk be diversified away by investing in both Bigcommerce Holdings and Model N 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 Bigcommerce Holdings and Model N into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bigcommerce Holdings and Model N, you can compare the effects of market volatilities on Bigcommerce Holdings and Model N 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 Bigcommerce Holdings with a short position of Model N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bigcommerce Holdings and Model N.

Diversification Opportunities for Bigcommerce Holdings and Model N

0.18

Correlation Coefficient

Bigcommerce Holdings  Model N

Average diversification

The 3 months correlation between Bigcommerce and Model is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bigcommerce Holdings and Model N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Model N and Bigcommerce 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 Bigcommerce Holdings are associated (or correlated) with Model N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Model N has no effect on the direction of Bigcommerce Holdings i.e., Bigcommerce Holdings and Model N go up and down completely randomly.

Pair Corralation between Bigcommerce Holdings and Model N

If you would invest  584.00  in Bigcommerce Holdings on September 4, 2024 and sell it today you would earn a total of  143.00  from holding Bigcommerce Holdings or generate 24.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Bigcommerce Holdings  vs.  Model N

Bigcommerce Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bigcommerce Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Bigcommerce Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Model N

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Model N has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Model N is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Bigcommerce Holdings and Model N

The main advantage of trading using opposite Bigcommerce Holdings and Model N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bigcommerce Holdings position performs unexpectedly, Model N 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 Model N will offset losses from the drop in Model N's long position.

The idea behind Bigcommerce Holdings and Model N pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.