Correlation Between AB International and Blackbaud
Can any of the company-specific risk be diversified away by investing in both AB International and Blackbaud 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 AB International and Blackbaud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB International Group and Blackbaud, you can compare the effects of market volatilities on AB International and Blackbaud 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 AB International with a short position of Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB International and Blackbaud.
Diversification Opportunities for AB International and Blackbaud
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABQQ and Blackbaud is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AB International Group and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and AB International 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 AB International Group are associated (or correlated) with Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of AB International i.e., AB International and Blackbaud go up and down completely randomly.
Pair Corralation between AB International and Blackbaud
Given the investment horizon of 90 days AB International Group is expected to under-perform the Blackbaud. In addition to that, AB International is 11.87 times more volatile than Blackbaud. It trades about -0.23 of its total potential returns per unit of risk. Blackbaud is currently generating about 0.23 per unit of volatility. If you would invest 7,372 in Blackbaud on November 3, 2024 and sell it today you would earn a total of 343.00 from holding Blackbaud or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
AB International Group vs. Blackbaud
Performance |
| Timeline |
| AB International |
| Blackbaud |
AB International and Blackbaud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB International and Blackbaud
The main advantage of trading using opposite AB International and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB International position performs unexpectedly, Blackbaud 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 Blackbaud will offset losses from the drop in Blackbaud's long position.| AB International vs. Peer To Peer | AB International vs. AppYea Inc | AB International vs. Image Protect | AB International vs. Bowmo Inc |
| Blackbaud vs. Progress Software | Blackbaud vs. Enfusion | Blackbaud vs. E2open Parent Holdings | Blackbaud vs. Aspen Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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