Correlation Between Verint Systems and Backblaze
Can any of the company-specific risk be diversified away by investing in both Verint Systems and Backblaze 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 Verint Systems and Backblaze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verint Systems and Backblaze, you can compare the effects of market volatilities on Verint Systems and Backblaze 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 Verint Systems with a short position of Backblaze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verint Systems and Backblaze.
Diversification Opportunities for Verint Systems and Backblaze
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Verint and Backblaze is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Verint Systems and Backblaze in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Backblaze and Verint 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 Verint Systems are associated (or correlated) with Backblaze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Backblaze has no effect on the direction of Verint Systems i.e., Verint Systems and Backblaze go up and down completely randomly.
Pair Corralation between Verint Systems and Backblaze
Given the investment horizon of 90 days Verint Systems is expected to generate 0.48 times more return on investment than Backblaze. However, Verint Systems is 2.07 times less risky than Backblaze. It trades about 0.23 of its potential returns per unit of risk. Backblaze is currently generating about -0.06 per unit of risk. If you would invest 2,206 in Verint Systems on August 27, 2024 and sell it today you would earn a total of 276.00 from holding Verint Systems or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verint Systems vs. Backblaze
Performance |
| Timeline |
| Verint Systems |
| Backblaze |
Verint Systems and Backblaze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verint Systems and Backblaze
The main advantage of trading using opposite Verint Systems and Backblaze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verint Systems position performs unexpectedly, Backblaze 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 Backblaze will offset losses from the drop in Backblaze's long position.| Verint Systems vs. GigaCloud Technology Class | Verint Systems vs. Arqit Quantum | Verint Systems vs. Telos Corp | Verint Systems vs. Cemtrex |
| Backblaze vs. ACI Worldwide | Backblaze vs. Remitly Global | Backblaze vs. EverCommerce | Backblaze vs. Global Blue Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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