Correlation Between Bakkt Holdings and Joint Stock
Can any of the company-specific risk be diversified away by investing in both Bakkt Holdings and Joint Stock 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 Joint Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakkt Holdings and Joint Stock, you can compare the effects of market volatilities on Bakkt Holdings and Joint Stock 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 Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakkt Holdings and Joint Stock.
Diversification Opportunities for Bakkt Holdings and Joint Stock
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bakkt and Joint is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bakkt Holdings and Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock 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 are associated (or correlated) with Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock has no effect on the direction of Bakkt Holdings i.e., Bakkt Holdings and Joint Stock go up and down completely randomly.
Pair Corralation between Bakkt Holdings and Joint Stock
Given the investment horizon of 90 days Bakkt Holdings is expected to generate 5.84 times more return on investment than Joint Stock. However, Bakkt Holdings is 5.84 times more volatile than Joint Stock. It trades about 0.07 of its potential returns per unit of risk. Joint Stock is currently generating about -0.06 per unit of risk. If you would invest 1,892 in Bakkt Holdings on September 26, 2024 and sell it today you would earn a total of 887.00 from holding Bakkt Holdings or generate 46.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bakkt Holdings vs. Joint Stock
Performance |
Timeline |
Bakkt Holdings |
Joint Stock |
Bakkt Holdings and Joint Stock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bakkt Holdings and Joint Stock
The main advantage of trading using opposite Bakkt Holdings and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakkt Holdings position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.Bakkt Holdings vs. Arqit Quantum | Bakkt Holdings vs. Alarum Technologies | Bakkt Holdings vs. GigaCloud Technology Class | Bakkt Holdings vs. Pagaya Technologies |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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