Correlation Between Bentley Systems and Paycor HCM
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and Paycor HCM 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 Paycor HCM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and Paycor HCM, you can compare the effects of market volatilities on Bentley Systems and Paycor HCM 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 Paycor HCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Paycor HCM.
Diversification Opportunities for Bentley Systems and Paycor HCM
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentley and Paycor is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and Paycor HCM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paycor HCM 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 Paycor HCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paycor HCM has no effect on the direction of Bentley Systems i.e., Bentley Systems and Paycor HCM go up and down completely randomly.
Pair Corralation between Bentley Systems and Paycor HCM
Considering the 90-day investment horizon Bentley Systems is expected to generate 0.79 times more return on investment than Paycor HCM. However, Bentley Systems is 1.27 times less risky than Paycor HCM. It trades about 0.04 of its potential returns per unit of risk. Paycor HCM is currently generating about -0.02 per unit of risk. If you would invest 3,653 in Bentley Systems on August 26, 2024 and sell it today you would earn a total of 1,198 from holding Bentley Systems or generate 32.79% 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. Paycor HCM
Performance |
| Timeline |
| Bentley Systems |
| Paycor HCM |
Bentley Systems and Paycor HCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and Paycor HCM
The main advantage of trading using opposite Bentley Systems and Paycor HCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, Paycor HCM 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 Paycor HCM will offset losses from the drop in Paycor HCM's long position.The idea behind Bentley Systems and Paycor HCM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Paycor HCM vs. Manhattan Associates | Paycor HCM vs. Paycom Soft | Paycor HCM vs. Clearwater Analytics Holdings | Paycor HCM vs. Procore Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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