Correlation Between Blackbaud and Bentley Systems
Can any of the company-specific risk be diversified away by investing in both Blackbaud and Bentley Systems 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 Bentley Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackbaud and Bentley Systems, you can compare the effects of market volatilities on Blackbaud and Bentley Systems 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 Bentley Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackbaud and Bentley Systems.
Diversification Opportunities for Blackbaud and Bentley Systems
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackbaud and Bentley is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Bentley Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley Systems 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 Bentley Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley Systems has no effect on the direction of Blackbaud i.e., Blackbaud and Bentley Systems go up and down completely randomly.
Pair Corralation between Blackbaud and Bentley Systems
Given the investment horizon of 90 days Blackbaud is expected to generate 2.26 times more return on investment than Bentley Systems. However, Blackbaud is 2.26 times more volatile than Bentley Systems. It trades about 0.01 of its potential returns per unit of risk. Bentley Systems is currently generating about -0.04 per unit of risk. If you would invest 8,606 in Blackbaud on August 24, 2024 and sell it today you would lose (69.00) from holding Blackbaud or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackbaud vs. Bentley Systems
Performance |
| Timeline |
| Blackbaud |
| Bentley Systems |
Blackbaud and Bentley Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackbaud and Bentley Systems
The main advantage of trading using opposite Blackbaud and Bentley Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackbaud position performs unexpectedly, Bentley Systems 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 Bentley Systems will offset losses from the drop in Bentley Systems' long position.| Blackbaud vs. Envestnet | Blackbaud vs. Progress Software | Blackbaud vs. Enfusion | Blackbaud vs. E2open Parent Holdings |
| Bentley Systems vs. Alkami Technology | Bentley Systems vs. Envestnet | Bentley Systems vs. Paycor HCM | Bentley Systems vs. Procore Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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