Correlation Between BigBearai Holdings and Gold Bull

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

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

Diversification Opportunities for BigBearai Holdings and Gold Bull

0.05

Correlation Coefficient

BigBearai Holdings  Gold Bull

Significant diversification

The 3 months correlation between BigBearai and Gold is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources 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 Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Gold Bull go up and down completely randomly.

Pair Corralation between BigBearai Holdings and Gold Bull

Given the investment horizon of 90 days BigBearai Holdings is expected to generate 16.45 times less return on investment than Gold Bull. In addition to that, BigBearai Holdings is 2.57 times more volatile than Gold Bull Resources. It trades about 0.0 of its total potential returns per unit of risk. Gold Bull Resources is currently generating about 0.09 per unit of volatility. If you would invest  31.00  in Gold Bull Resources on December 26, 2024 and sell it today you would earn a total of  6.00  from holding Gold Bull Resources or generate 19.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

BigBearai Holdings  vs.  Gold Bull Resources

BigBearai Holdings

Risk-Adjusted Performance

Weak

Over the last 90 days BigBearai Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, BigBearai Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Gold Bull Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Bull Resources are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Gold Bull reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BigBearai Holdings and Gold Bull

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

The idea behind BigBearai Holdings and Gold Bull Resources 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.