Correlation Between Bentley Systems and Braze
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and Braze 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 Braze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and Braze Inc, you can compare the effects of market volatilities on Bentley Systems and Braze 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 Braze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Braze.
Diversification Opportunities for Bentley Systems and Braze
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bentley and Braze is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and Braze Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braze 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 Braze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braze Inc has no effect on the direction of Bentley Systems i.e., Bentley Systems and Braze go up and down completely randomly.
Pair Corralation between Bentley Systems and Braze
Considering the 90-day investment horizon Bentley Systems is expected to under-perform the Braze. But the stock apears to be less risky and, when comparing its historical volatility, Bentley Systems is 1.48 times less risky than Braze. The stock trades about -0.04 of its potential returns per unit of risk. The Braze Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,234 in Braze Inc on August 30, 2024 and sell it today you would earn a total of 648.00 from holding Braze Inc or generate 20.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentley Systems vs. Braze Inc
Performance |
| Timeline |
| Bentley Systems |
| Braze Inc |
Bentley Systems and Braze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and Braze
The main advantage of trading using opposite Bentley Systems and Braze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, Braze 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 Braze will offset losses from the drop in Braze'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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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