Correlation Between NeoMedia Technologies and Blackbaud
Can any of the company-specific risk be diversified away by investing in both NeoMedia Technologies 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 NeoMedia Technologies and Blackbaud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeoMedia Technologies and Blackbaud, you can compare the effects of market volatilities on NeoMedia Technologies 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 NeoMedia Technologies with a short position of Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeoMedia Technologies and Blackbaud.
Diversification Opportunities for NeoMedia Technologies and Blackbaud
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeoMedia and Blackbaud is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding NeoMedia Technologies and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and NeoMedia Technologies 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 NeoMedia Technologies 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 NeoMedia Technologies i.e., NeoMedia Technologies and Blackbaud go up and down completely randomly.
Pair Corralation between NeoMedia Technologies and Blackbaud
If you would invest 7,372 in Blackbaud on November 3, 2024 and sell it today you would earn a total of 343.00 from holding Blackbaud or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NeoMedia Technologies vs. Blackbaud
Performance |
| Timeline |
| NeoMedia Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackbaud |
NeoMedia Technologies and Blackbaud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeoMedia Technologies and Blackbaud
The main advantage of trading using opposite NeoMedia Technologies and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeoMedia Technologies 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.| NeoMedia Technologies vs. AB International Group | NeoMedia Technologies vs. Peer To Peer | NeoMedia Technologies vs. AppYea Inc | NeoMedia Technologies vs. BASE Inc |
| Blackbaud vs. Progress Software | Blackbaud vs. Enfusion | Blackbaud vs. E2open Parent Holdings | Blackbaud vs. Aspen Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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