Correlation Between Bm Technologies and Sprinklr
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and Sprinklr 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 Bm Technologies and Sprinklr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and Sprinklr, you can compare the effects of market volatilities on Bm Technologies and Sprinklr 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 Bm Technologies with a short position of Sprinklr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and Sprinklr.
Diversification Opportunities for Bm Technologies and Sprinklr
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BMTX and Sprinklr is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and Sprinklr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprinklr and Bm 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 Bm Technologies are associated (or correlated) with Sprinklr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprinklr has no effect on the direction of Bm Technologies i.e., Bm Technologies and Sprinklr go up and down completely randomly.
Pair Corralation between Bm Technologies and Sprinklr
Given the investment horizon of 90 days Bm Technologies is expected to generate 2.11 times more return on investment than Sprinklr. However, Bm Technologies is 2.11 times more volatile than Sprinklr. It trades about -0.08 of its potential returns per unit of risk. Sprinklr is currently generating about -0.17 per unit of risk. If you would invest 167.00 in Bm Technologies on January 26, 2024 and sell it today you would lose (12.50) from holding Bm Technologies or give up 7.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bm Technologies vs. Sprinklr
Performance |
Timeline |
Bm Technologies |
Sprinklr |
Bm Technologies and Sprinklr Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bm Technologies and Sprinklr
The main advantage of trading using opposite Bm Technologies and Sprinklr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, Sprinklr 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 Sprinklr will offset losses from the drop in Sprinklr's long position.Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
Sprinklr vs. Expensify | Sprinklr vs. Clearwater Analytics Holdings | Sprinklr vs. Alkami Technology | Sprinklr vs. Vertex |
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 Stocks Directory module to find actively traded stocks across global markets.
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