Correlation Between Blackline and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both Blackline and Marti Technologies 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 Blackline and Marti Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackline and Marti Technologies, you can compare the effects of market volatilities on Blackline and Marti Technologies 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 Blackline with a short position of Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackline and Marti Technologies.
Diversification Opportunities for Blackline and Marti Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackline and Marti is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Blackline and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies and Blackline 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 Blackline are associated (or correlated) with Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Blackline i.e., Blackline and Marti Technologies go up and down completely randomly.
Pair Corralation between Blackline and Marti Technologies
Allowing for the 90-day total investment horizon Blackline is expected to generate 0.4 times more return on investment than Marti Technologies. However, Blackline is 2.51 times less risky than Marti Technologies. It trades about -0.04 of its potential returns per unit of risk. Marti Technologies is currently generating about -0.09 per unit of risk. If you would invest 4,805 in Blackline on January 10, 2025 and sell it today you would lose (192.00) from holding Blackline or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackline vs. Marti Technologies
Performance |
| Timeline |
| Blackline |
| Marti Technologies |
Blackline and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackline and Marti Technologies
The main advantage of trading using opposite Blackline and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackline position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| Blackline vs. Manhattan Associates | Blackline vs. DoubleVerify Holdings | Blackline vs. ANSYS Inc | Blackline vs. Alkami Technology |
| Marti Technologies vs. Agilysys | Marti Technologies vs. ADEIA P | Marti Technologies vs. Paycor HCM | Marti Technologies vs. Paylocity Holdng |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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