Correlation Between GBT Technologies and BigBearai Holdings

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

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

Diversification Opportunities for GBT Technologies and BigBearai Holdings

-0.2

Correlation Coefficient

GBT Technologies  BigBearai Holdings

Good diversification

The 3 months correlation between GBT and BigBearai is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and BigBearai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBearai Holdings and GBT Technologies 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 GBT Technologies are associated (or correlated) with BigBearai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBearai Holdings has no effect on the direction of GBT Technologies i.e., GBT Technologies and BigBearai Holdings go up and down completely randomly.

Pair Corralation between GBT Technologies and BigBearai Holdings

Given the investment horizon of 90 days GBT Technologies is expected to generate 19.7 times more return on investment than BigBearai Holdings. However, GBT Technologies is 19.7 times more volatile than BigBearai Holdings. It trades about 0.2 of its potential returns per unit of risk. BigBearai Holdings is currently generating about 0.0 per unit of risk. If you would invest  0.02  in GBT Technologies on December 27, 2024 and sell it today you would lose (0.01) from holding GBT Technologies or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GBT Technologies  vs.  BigBearai Holdings

GBT Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GBT Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, GBT Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with GBT Technologies and BigBearai Holdings

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

The idea behind GBT Technologies and BigBearai Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.