Correlation Between Bentley Systems and Blackbaud
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and Blackbaud 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 Blackbaud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and Blackbaud, you can compare the effects of market volatilities on Bentley Systems and Blackbaud 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 Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Blackbaud.
Diversification Opportunities for Bentley Systems and Blackbaud
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bentley and Blackbaud is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud 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 Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of Bentley Systems i.e., Bentley Systems and Blackbaud go up and down completely randomly.
Pair Corralation between Bentley Systems and Blackbaud
Considering the 90-day investment horizon Bentley Systems is expected to under-perform the Blackbaud. But the stock apears to be less risky and, when comparing its historical volatility, Bentley Systems is 2.26 times less risky than Blackbaud. The stock trades about -0.04 of its potential returns per unit of risk. The Blackbaud is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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 |
Bentley Systems vs. Blackbaud
Performance |
| Timeline |
| Bentley Systems |
| Blackbaud |
Bentley Systems and Blackbaud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and Blackbaud
The main advantage of trading using opposite Bentley Systems and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, Blackbaud 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 Blackbaud will offset losses from the drop in Blackbaud's long position.| Bentley Systems vs. Alkami Technology | Bentley Systems vs. Envestnet | Bentley Systems vs. Paycor HCM | Bentley Systems vs. Procore Technologies |
| Blackbaud vs. Envestnet | Blackbaud vs. Progress Software | Blackbaud vs. Enfusion | Blackbaud vs. E2open Parent Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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