Correlation Between Waldencast Acquisition and Bentley Systems
Can any of the company-specific risk be diversified away by investing in both Waldencast Acquisition and Bentley Systems 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 Waldencast Acquisition and Bentley Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waldencast Acquisition Corp and Bentley Systems, you can compare the effects of market volatilities on Waldencast Acquisition and Bentley Systems 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 Waldencast Acquisition with a short position of Bentley Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and Bentley Systems.
Diversification Opportunities for Waldencast Acquisition and Bentley Systems
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Waldencast and Bentley is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp and Bentley Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley Systems and Waldencast Acquisition 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 Waldencast Acquisition Corp are associated (or correlated) with Bentley Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley Systems has no effect on the direction of Waldencast Acquisition i.e., Waldencast Acquisition and Bentley Systems go up and down completely randomly.
Pair Corralation between Waldencast Acquisition and Bentley Systems
Given the investment horizon of 90 days Waldencast Acquisition Corp is expected to generate 1.77 times more return on investment than Bentley Systems. However, Waldencast Acquisition is 1.77 times more volatile than Bentley Systems. It trades about 0.06 of its potential returns per unit of risk. Bentley Systems is currently generating about 0.07 per unit of risk. If you would invest 327.00 in Waldencast Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Waldencast Acquisition Corp or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waldencast Acquisition Corp vs. Bentley Systems
Performance |
| Timeline |
| Waldencast Acquisition |
| Bentley Systems |
Waldencast Acquisition and Bentley Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waldencast Acquisition and Bentley Systems
The main advantage of trading using opposite Waldencast Acquisition and Bentley Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waldencast Acquisition position performs unexpectedly, Bentley Systems 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 Bentley Systems will offset losses from the drop in Bentley Systems' long position.| Waldencast Acquisition vs. Where Food Comes | Waldencast Acquisition vs. VTEX | Waldencast Acquisition vs. Vertex | Waldencast Acquisition vs. BASE Inc |
| Bentley Systems vs. Ke Holdings | Bentley Systems vs. nCino Inc | Bentley Systems vs. Kingsoft Cloud Holdings | Bentley Systems vs. Jfrog |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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