Correlation Between BigBearai Holdings and Lasertec
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and Lasertec 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 Lasertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and Lasertec, you can compare the effects of market volatilities on BigBearai Holdings and Lasertec 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 Lasertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and Lasertec.
Diversification Opportunities for BigBearai Holdings and Lasertec
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BigBearai and Lasertec is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec 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 Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and Lasertec go up and down completely randomly.
Pair Corralation between BigBearai Holdings and Lasertec
Given the investment horizon of 90 days BigBearai Holdings is expected to under-perform the Lasertec. In addition to that, BigBearai Holdings is 3.82 times more volatile than Lasertec. It trades about -0.02 of its total potential returns per unit of risk. Lasertec is currently generating about -0.04 per unit of volatility. If you would invest 1,921 in Lasertec on December 29, 2024 and sell it today you would lose (178.00) from holding Lasertec or give up 9.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BigBearai Holdings vs. Lasertec
Performance |
Timeline |
BigBearai Holdings |
Lasertec |
BigBearai Holdings and Lasertec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BigBearai Holdings and Lasertec
The main advantage of trading using opposite BigBearai Holdings and Lasertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, Lasertec 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 Lasertec will offset losses from the drop in Lasertec's long position.BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. SCREEN Holdings Co | Lasertec vs. Tokyo Electron |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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