Correlation Between Friendable and Blackbaud
Can any of the company-specific risk be diversified away by investing in both Friendable and Blackbaud 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 Friendable and Blackbaud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Friendable and Blackbaud, you can compare the effects of market volatilities on Friendable and Blackbaud 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 Friendable with a short position of Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Friendable and Blackbaud.
Diversification Opportunities for Friendable and Blackbaud
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Friendable and Blackbaud is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Friendable and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and Friendable 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 Friendable are associated (or correlated) with Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of Friendable i.e., Friendable and Blackbaud go up and down completely randomly.
Pair Corralation between Friendable and Blackbaud
Given the investment horizon of 90 days Friendable is expected to generate 43.42 times more return on investment than Blackbaud. However, Friendable is 43.42 times more volatile than Blackbaud. It trades about 0.07 of its potential returns per unit of risk. Blackbaud is currently generating about 0.05 per unit of risk. If you would invest 5.00 in Friendable on August 30, 2024 and sell it today you would lose (4.99) from holding Friendable or give up 99.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Friendable vs. Blackbaud
Performance |
| Timeline |
| Friendable |
| Blackbaud |
Friendable and Blackbaud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Friendable and Blackbaud
The main advantage of trading using opposite Friendable and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Friendable position performs unexpectedly, Blackbaud 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 Blackbaud will offset losses from the drop in Blackbaud's long position.| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
| Blackbaud vs. Marin Software | Blackbaud vs. EzFill Holdings | Blackbaud vs. Trust Stamp | Blackbaud vs. Infobird Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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