Correlation Between Bakkt Holdings and MariaDB Plc

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

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

Diversification Opportunities for Bakkt Holdings and MariaDB Plc

0.0

Correlation Coefficient

Bakkt Holdings  MariaDB Plc

Pay attention - limited upside

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

Pair Corralation between Bakkt Holdings and MariaDB Plc

If you would invest (100.00) in MariaDB Plc on December 29, 2024 and sell it today you would earn a total of  100.00  from holding MariaDB Plc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bakkt Holdings  vs.  MariaDB Plc

Bakkt Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bakkt Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MariaDB Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MariaDB Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, MariaDB Plc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bakkt Holdings and MariaDB Plc

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

The idea behind Bakkt Holdings and MariaDB Plc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.