Correlation Between Blackbaud and Hitek Global
Can any of the company-specific risk be diversified away by investing in both Blackbaud and Hitek Global 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 Hitek Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackbaud and Hitek Global Ordinary, you can compare the effects of market volatilities on Blackbaud and Hitek Global 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 Hitek Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackbaud and Hitek Global.
Diversification Opportunities for Blackbaud and Hitek Global
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackbaud and Hitek is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Hitek Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitek Global Ordinary 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 Hitek Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitek Global Ordinary has no effect on the direction of Blackbaud i.e., Blackbaud and Hitek Global go up and down completely randomly.
Pair Corralation between Blackbaud and Hitek Global
Given the investment horizon of 90 days Blackbaud is expected to generate 17.45 times less return on investment than Hitek Global. But when comparing it to its historical volatility, Blackbaud is 10.18 times less risky than Hitek Global. It trades about 0.03 of its potential returns per unit of risk. Hitek Global Ordinary is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Hitek Global Ordinary on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Hitek Global Ordinary or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.51% |
| Values | Daily Returns |
Blackbaud vs. Hitek Global Ordinary
Performance |
| Timeline |
| Blackbaud |
| Hitek Global Ordinary |
Blackbaud and Hitek Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackbaud and Hitek Global
The main advantage of trading using opposite Blackbaud and Hitek Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackbaud position performs unexpectedly, Hitek Global 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 Hitek Global will offset losses from the drop in Hitek Global's long position.| Blackbaud vs. Progress Software | Blackbaud vs. Enfusion | Blackbaud vs. E2open Parent Holdings | Blackbaud vs. Aspen Technology |
| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Clearwater Analytics Holdings | Hitek Global vs. Expensify |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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