Correlation Between Blackbaud and Bumble
Can any of the company-specific risk be diversified away by investing in both Blackbaud and Bumble 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 Blackbaud and Bumble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackbaud and Bumble Inc, you can compare the effects of market volatilities on Blackbaud and Bumble 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 Blackbaud with a short position of Bumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackbaud and Bumble.
Diversification Opportunities for Blackbaud and Bumble
Modest diversification
The 3 months correlation between Blackbaud and Bumble is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Bumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumble Inc and Blackbaud 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 Blackbaud are associated (or correlated) with Bumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumble Inc has no effect on the direction of Blackbaud i.e., Blackbaud and Bumble go up and down completely randomly.
Pair Corralation between Blackbaud and Bumble
Given the investment horizon of 90 days Blackbaud is expected to generate 1.39 times less return on investment than Bumble. But when comparing it to its historical volatility, Blackbaud is 2.9 times less risky than Bumble. It trades about 0.23 of its potential returns per unit of risk. Bumble Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Bumble Inc on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Bumble Inc or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blackbaud vs. Bumble Inc
Performance |
| Timeline |
| Blackbaud |
| Bumble Inc |
Blackbaud and Bumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackbaud and Bumble
The main advantage of trading using opposite Blackbaud and Bumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackbaud position performs unexpectedly, Bumble 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 Bumble will offset losses from the drop in Bumble's long position.| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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