Correlation Between Bridgeline Digital and CiT
Can any of the company-specific risk be diversified away by investing in both Bridgeline Digital and CiT 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 Bridgeline Digital and CiT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgeline Digital and CiT Inc, you can compare the effects of market volatilities on Bridgeline Digital and CiT 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 Bridgeline Digital with a short position of CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgeline Digital and CiT.
Diversification Opportunities for Bridgeline Digital and CiT
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridgeline and CiT is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bridgeline Digital and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Bridgeline Digital 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 Bridgeline Digital are associated (or correlated) with CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Bridgeline Digital i.e., Bridgeline Digital and CiT go up and down completely randomly.
Pair Corralation between Bridgeline Digital and CiT
Given the investment horizon of 90 days Bridgeline Digital is expected to generate 0.92 times more return on investment than CiT. However, Bridgeline Digital is 1.09 times less risky than CiT. It trades about 0.01 of its potential returns per unit of risk. CiT Inc is currently generating about -0.01 per unit of risk. If you would invest 110.00 in Bridgeline Digital on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Bridgeline Digital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgeline Digital vs. CiT Inc
Performance |
| Timeline |
| Bridgeline Digital |
| CiT Inc |
Bridgeline Digital and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgeline Digital and CiT
The main advantage of trading using opposite Bridgeline Digital and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgeline Digital position performs unexpectedly, CiT 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 CiT will offset losses from the drop in CiT's long position.| Bridgeline Digital vs. Taoping | Bridgeline Digital vs. Datasea | Bridgeline Digital vs. Aurora Mobile | Bridgeline Digital vs. authID Inc |
| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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