Correlation Between Bentley Systems and Pegasystems
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and Pegasystems 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 Pegasystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and Pegasystems, you can compare the effects of market volatilities on Bentley Systems and Pegasystems 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 Pegasystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Pegasystems.
Diversification Opportunities for Bentley Systems and Pegasystems
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentley and Pegasystems is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems 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 Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Bentley Systems i.e., Bentley Systems and Pegasystems go up and down completely randomly.
Pair Corralation between Bentley Systems and Pegasystems
Considering the 90-day investment horizon Bentley Systems is expected to generate 24.35 times less return on investment than Pegasystems. But when comparing it to its historical volatility, Bentley Systems is 1.29 times less risky than Pegasystems. It trades about 0.0 of its potential returns per unit of risk. Pegasystems is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,558 in Pegasystems on August 25, 2024 and sell it today you would earn a total of 2,594 from holding Pegasystems or generate 39.55% 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. Pegasystems
Performance |
| Timeline |
| Bentley Systems |
| Pegasystems |
Bentley Systems and Pegasystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and Pegasystems
The main advantage of trading using opposite Bentley Systems and Pegasystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, Pegasystems 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 Pegasystems will offset losses from the drop in Pegasystems' long position.| Bentley Systems vs. OLB Group | Bentley Systems vs. Friendable | Bentley Systems vs. Trust Stamp | Bentley Systems vs. Infobird Co |
| Pegasystems vs. Wex Inc | Pegasystems vs. Cognex | Pegasystems vs. Progress Software | Pegasystems vs. Fair Isaac |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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