Correlation Between Bentley Systems and OLB
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and OLB 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 OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and OLB Group, you can compare the effects of market volatilities on Bentley Systems and OLB 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 OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and OLB.
Diversification Opportunities for Bentley Systems and OLB
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bentley and OLB is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group 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 OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of Bentley Systems i.e., Bentley Systems and OLB go up and down completely randomly.
Pair Corralation between Bentley Systems and OLB
Considering the 90-day investment horizon Bentley Systems is expected to generate 0.25 times more return on investment than OLB. However, Bentley Systems is 4.04 times less risky than OLB. It trades about 0.01 of its potential returns per unit of risk. OLB Group is currently generating about -0.01 per unit of risk. If you would invest 4,978 in Bentley Systems on August 31, 2024 and sell it today you would lose (28.00) from holding Bentley Systems or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bentley Systems vs. OLB Group
Performance |
| Timeline |
| Bentley Systems |
| OLB Group |
Bentley Systems and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and OLB
The main advantage of trading using opposite Bentley Systems and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, OLB 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 OLB will offset losses from the drop in OLB'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 CEOs Directory module to screen CEOs from public companies around the world.
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