Correlation Between Bakkt Holdings and Lottery, Warrants

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

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

Diversification Opportunities for Bakkt Holdings and Lottery, Warrants

-0.47

Correlation Coefficient

Bakkt Holdings  Lottery, Warrants

Very good diversification

The 3 months correlation between Bakkt and Lottery, is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings Warrant and Lottery, Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Warrants and Bakkt 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 Bakkt Holdings Warrant are associated (or correlated) with Lottery, Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Warrants has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Lottery, Warrants go up and down completely randomly.

Pair Corralation between Bakkt Holdings and Lottery, Warrants

Assuming the 90 days trading horizon Bakkt Holdings Warrant is expected to generate 3.31 times more return on investment than Lottery, Warrants. However, Bakkt Holdings is 3.31 times more volatile than Lottery, Warrants. It trades about 0.15 of its potential returns per unit of risk. Lottery, Warrants is currently generating about 0.01 per unit of risk. If you would invest  8.98  in Bakkt Holdings Warrant on September 21, 2024 and sell it today you would earn a total of  41.02  from holding Bakkt Holdings Warrant or generate 456.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Bakkt Holdings Warrant  vs.  Lottery, Warrants

Bakkt Holdings Warrant

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bakkt Holdings Warrant are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Bakkt Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lottery, Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lottery, Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Lottery, Warrants may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Bakkt Holdings and Lottery, Warrants

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

The idea behind Bakkt Holdings Warrant and Lottery, Warrants 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.