Correlation Between Bridgetown Holdings and CuriosityStream

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

By analyzing existing cross correlation between Bridgetown Holdings and CuriosityStream, you can compare the effects of market volatilities on Bridgetown Holdings and CuriosityStream 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 Bridgetown Holdings with a short position of CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgetown Holdings and CuriosityStream.

Diversification Opportunities for Bridgetown Holdings and CuriosityStream

0.0

Correlation Coefficient

Bridgetown Holdings  CuriosityStream

Pay attention - limited upside

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

Pair Corralation between Bridgetown Holdings and CuriosityStream

If you would invest  2.48  in CuriosityStream on December 1, 2024 and sell it today you would earn a total of  0.56  from holding CuriosityStream or generate 22.58% return on investment over 90 days.

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

Bridgetown Holdings  vs.  CuriosityStream

Bridgetown Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgetown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bridgetown Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

CuriosityStream

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CuriosityStream are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward indicators, CuriosityStream showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bridgetown Holdings and CuriosityStream

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

The idea behind Bridgetown Holdings and CuriosityStream 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.