Correlation Between Bentley Systems and PROS Holdings
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and PROS Holdings 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 PROS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and PROS Holdings, you can compare the effects of market volatilities on Bentley Systems and PROS Holdings 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 PROS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and PROS Holdings.
Diversification Opportunities for Bentley Systems and PROS Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bentley and PROS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and PROS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROS 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 PROS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROS Holdings has no effect on the direction of Bentley Systems i.e., Bentley Systems and PROS Holdings go up and down completely randomly.
Pair Corralation between Bentley Systems and PROS Holdings
Considering the 90-day investment horizon Bentley Systems is expected to generate 34.96 times less return on investment than PROS Holdings. But when comparing it to its historical volatility, Bentley Systems is 1.59 times less risky than PROS Holdings. It trades about 0.01 of its potential returns per unit of risk. PROS Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,149 in PROS Holdings on November 3, 2024 and sell it today you would earn a total of 213.00 from holding PROS Holdings or generate 9.91% 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. PROS Holdings
Performance |
| Timeline |
| Bentley Systems |
| PROS Holdings |
Bentley Systems and PROS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and PROS Holdings
The main advantage of trading using opposite Bentley Systems and PROS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, PROS Holdings 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 PROS Holdings will offset losses from the drop in PROS Holdings' long position.| Bentley Systems vs. Appfolio | Bentley Systems vs. Workiva | Bentley Systems vs. Alarm Holdings | Bentley Systems vs. nCino Inc |
| PROS Holdings vs. Meridianlink | PROS Holdings vs. Enfusion | PROS Holdings vs. PDF Solutions | PROS Holdings vs. ePlus 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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