Correlation Between SpringBig Holdings and Blend Labs

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

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

Diversification Opportunities for SpringBig Holdings and Blend Labs

0.0

Correlation Coefficient

SpringBig Holdings  Blend Labs

Pay attention - limited upside

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

Pair Corralation between SpringBig Holdings and Blend Labs

If you would invest  335.00  in Blend Labs on April 30, 2025 and sell it today you would earn a total of  14.00  from holding Blend Labs or generate 4.18% return on investment over 90 days.

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

SpringBig Holdings  vs.  Blend Labs

SpringBig Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days SpringBig Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, SpringBig Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Blend Labs

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blend Labs are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Blend Labs is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SpringBig Holdings and Blend Labs

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

The idea behind SpringBig Holdings and Blend Labs 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.