Correlation Between BigBearai Holdings and Hybrid Kinetic

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

By analyzing existing cross correlation between BigBearai Holdings and Hybrid Kinetic Group, you can compare the effects of market volatilities on BigBearai Holdings and Hybrid Kinetic 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 Hybrid Kinetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Hybrid Kinetic.

Diversification Opportunities for BigBearai Holdings and Hybrid Kinetic

0.0

Correlation Coefficient

BigBearai Holdings  Hybrid Kinetic

Pay attention - limited upside

The 3 months correlation between BigBearai and Hybrid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Hybrid Kinetic Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hybrid Kinetic Group 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 Hybrid Kinetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hybrid Kinetic Group has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Hybrid Kinetic go up and down completely randomly.

Pair Corralation between BigBearai Holdings and Hybrid Kinetic

Given the investment horizon of 90 days BigBearai Holdings is expected to generate 3.86 times less return on investment than Hybrid Kinetic. But when comparing it to its historical volatility, BigBearai Holdings is 5.46 times less risky than Hybrid Kinetic. It trades about 0.06 of its potential returns per unit of risk. Hybrid Kinetic Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.12  in Hybrid Kinetic Group on October 7, 2024 and sell it today you would earn a total of  0.38  from holding Hybrid Kinetic Group or generate 316.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BigBearai Holdings  vs.  Hybrid Kinetic Group

BigBearai Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BigBearai Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, BigBearai Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Hybrid Kinetic Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hybrid Kinetic Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hybrid Kinetic is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BigBearai Holdings and Hybrid Kinetic

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

The idea behind BigBearai Holdings and Hybrid Kinetic Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.