Correlation Between SpringBig Holdings and Zeo Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings and Zeo Energy 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 SpringBig Holdings and Zeo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Zeo Energy Corp, you can compare the effects of market volatilities on SpringBig Holdings and Zeo Energy 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 SpringBig Holdings with a short position of Zeo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Zeo Energy.

Diversification Opportunities for SpringBig Holdings and Zeo Energy

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between SpringBig and Zeo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Zeo Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeo Energy Corp and SpringBig 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 SpringBig Holdings are associated (or correlated) with Zeo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeo Energy Corp has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Zeo Energy go up and down completely randomly.

Pair Corralation between SpringBig Holdings and Zeo Energy

If you would invest  4.00  in Zeo Energy Corp on October 10, 2024 and sell it today you would earn a total of  5.00  from holding Zeo Energy Corp or generate 125.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy2.63%
ValuesDaily Returns

SpringBig Holdings  vs.  Zeo Energy Corp

 Performance 
       Timeline  
SpringBig Holdings 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Zeo Energy Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Zeo Energy showed solid returns over the last few months and may actually be approaching a breakup point.

SpringBig Holdings and Zeo Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SpringBig Holdings and Zeo Energy

The main advantage of trading using opposite SpringBig Holdings and Zeo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings position performs unexpectedly, Zeo Energy 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 Zeo Energy will offset losses from the drop in Zeo Energy's long position.
The idea behind SpringBig Holdings and Zeo Energy Corp 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.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Global Correlations
Find global opportunities by holding instruments from different markets