Correlation Between Bentley Systems and E2open Parent
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and E2open Parent 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 E2open Parent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and E2open Parent Holdings, you can compare the effects of market volatilities on Bentley Systems and E2open Parent 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 E2open Parent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and E2open Parent.
Diversification Opportunities for Bentley Systems and E2open Parent
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bentley and E2open is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and E2open Parent Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E2open Parent Holdings 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 E2open Parent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E2open Parent Holdings has no effect on the direction of Bentley Systems i.e., Bentley Systems and E2open Parent go up and down completely randomly.
Pair Corralation between Bentley Systems and E2open Parent
Considering the 90-day investment horizon Bentley Systems is expected to generate 0.44 times more return on investment than E2open Parent. However, Bentley Systems is 2.26 times less risky than E2open Parent. It trades about 0.01 of its potential returns per unit of risk. E2open Parent Holdings is currently generating about -0.03 per unit of risk. If you would invest 4,099 in Bentley Systems on January 15, 2025 and sell it today you would earn a total of 201.00 from holding Bentley Systems or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentley Systems vs. E2open Parent Holdings
Performance |
| Timeline |
| Bentley Systems |
| E2open Parent Holdings |
Bentley Systems and E2open Parent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and E2open Parent
The main advantage of trading using opposite Bentley Systems and E2open Parent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, E2open Parent 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 E2open Parent will offset losses from the drop in E2open Parent's long position.| Bentley Systems vs. Appfolio | Bentley Systems vs. Workiva | Bentley Systems vs. Alarm Holdings | Bentley Systems vs. nCino Inc |
| E2open Parent vs. Blackbaud | E2open Parent vs. Enfusion | E2open Parent vs. Hitek Global Ordinary | E2open Parent vs. Paycor HCM |
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 CEOs Directory module to screen CEOs from public companies around the world.
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