Correlation Between SpringBig Holdings and Hestia Insight

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

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

Diversification Opportunities for SpringBig Holdings and Hestia Insight

0.38

Correlation Coefficient

SpringBig Holdings  Hestia Insight

Weak diversification

The 3 months correlation between SpringBig and Hestia is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings and Hestia Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hestia Insight 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 Hestia Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hestia Insight has no effect on the direction of SpringBig Holdings i.e., SpringBig Holdings and Hestia Insight go up and down completely randomly.

Pair Corralation between SpringBig Holdings and Hestia Insight

Given the investment horizon of 90 days SpringBig Holdings is expected to under-perform the Hestia Insight. In addition to that, SpringBig Holdings is 1.16 times more volatile than Hestia Insight. It trades about -0.01 of its total potential returns per unit of risk. Hestia Insight is currently generating about 0.04 per unit of volatility. If you would invest  5.10  in Hestia Insight on September 5, 2025 and sell it today you would lose (0.20) from holding Hestia Insight or give up 3.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

SpringBig Holdings  vs.  Hestia Insight

SpringBig Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days SpringBig Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Hestia Insight

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hestia Insight are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Hestia Insight sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SpringBig Holdings and Hestia Insight

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

The idea behind SpringBig Holdings and Hestia Insight 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 Transaction History module to view history of all your transactions and understand their impact on performance.