Correlation Between BigBearai Holdings and LEVEL

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

By analyzing existing cross correlation between BigBearai Holdings and LEVEL 3 FING, you can compare the effects of market volatilities on BigBearai Holdings and LEVEL 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 LEVEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and LEVEL.

Diversification Opportunities for BigBearai Holdings and LEVEL

0.06

Correlation Coefficient

BigBearai Holdings  LEVEL

Significant diversification

The 3 months correlation between BigBearai and LEVEL is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and LEVEL 3 FING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEVEL 3 FING 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 LEVEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEVEL 3 FING has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and LEVEL go up and down completely randomly.

Pair Corralation between BigBearai Holdings and LEVEL

Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.55 times more return on investment than LEVEL. However, BigBearai Holdings is 1.55 times more volatile than LEVEL 3 FING. It trades about -0.01 of its potential returns per unit of risk. LEVEL 3 FING is currently generating about -0.18 per unit of risk. If you would invest  445.00  in BigBearai Holdings on December 31, 2024 and sell it today you would lose (141.00) from holding BigBearai Holdings or give up 31.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	70.49%
Values	Daily Returns

BigBearai Holdings  vs.  LEVEL 3 FING

BigBearai Holdings

Risk-Adjusted Performance

Very 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.

LEVEL 3 FING

Risk-Adjusted Performance

Very Weak

Over the last 90 days LEVEL 3 FING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for LEVEL 3 FING investors.

Pair Trading with BigBearai Holdings and LEVEL

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

The idea behind BigBearai Holdings and LEVEL 3 FING 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.