Correlation Between Blackbaud and Model N
Can any of the company-specific risk be diversified away by investing in both Blackbaud and Model N 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 Model N into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackbaud and Model N, you can compare the effects of market volatilities on Blackbaud and Model N 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 Model N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackbaud and Model N.
Diversification Opportunities for Blackbaud and Model N
Excellent diversification
The 3 months correlation between Blackbaud and Model is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Model N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Model N 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 Model N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Model N has no effect on the direction of Blackbaud i.e., Blackbaud and Model N go up and down completely randomly.
Pair Corralation between Blackbaud and Model N
If you would invest 7,560 in Blackbaud on October 19, 2024 and sell it today you would earn a total of 180.00 from holding Blackbaud or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Blackbaud vs. Model N
Performance |
| Timeline |
| Blackbaud |
| Model N |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackbaud and Model N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackbaud and Model N
The main advantage of trading using opposite Blackbaud and Model N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackbaud position performs unexpectedly, Model N 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 Model N will offset losses from the drop in Model N'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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