Correlation Between Bentley Systems and ANSYS
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and ANSYS 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 Bentley Systems and ANSYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and ANSYS Inc, you can compare the effects of market volatilities on Bentley Systems and ANSYS 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 Bentley Systems with a short position of ANSYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and ANSYS.
Diversification Opportunities for Bentley Systems and ANSYS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bentley and ANSYS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and Bentley Systems 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 Bentley Systems are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Bentley Systems i.e., Bentley Systems and ANSYS go up and down completely randomly.
Pair Corralation between Bentley Systems and ANSYS
Considering the 90-day investment horizon Bentley Systems is expected to generate 5.06 times less return on investment than ANSYS. But when comparing it to its historical volatility, Bentley Systems is 1.11 times less risky than ANSYS. It trades about 0.05 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 32,117 in ANSYS Inc on August 27, 2024 and sell it today you would earn a total of 3,097 from holding ANSYS Inc or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentley Systems vs. ANSYS Inc
Performance |
| Timeline |
| Bentley Systems |
| ANSYS Inc |
Bentley Systems and ANSYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and ANSYS
The main advantage of trading using opposite Bentley Systems and ANSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, ANSYS 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 ANSYS will offset losses from the drop in ANSYS's long position.| Bentley Systems vs. Appfolio | Bentley Systems vs. Workiva | Bentley Systems vs. Alarm Holdings | Bentley Systems vs. nCino Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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