Correlation Between Cannae Holdings and Black Knight
Can any of the company-specific risk be diversified away by investing in both Cannae Holdings and Black Knight 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 Cannae Holdings and Black Knight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannae Holdings and Black Knight, you can compare the effects of market volatilities on Cannae Holdings and Black Knight 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 Cannae Holdings with a short position of Black Knight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and Black Knight.
Diversification Opportunities for Cannae Holdings and Black Knight
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cannae and Black is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and Black Knight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Knight and Cannae Holdings 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 Cannae Holdings are associated (or correlated) with Black Knight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Knight has no effect on the direction of Cannae Holdings i.e., Cannae Holdings and Black Knight go up and down completely randomly.
Pair Corralation between Cannae Holdings and Black Knight
If you would invest 7,576 in Black Knight on March 16, 2024 and sell it today you would earn a total of 0.00 from holding Black Knight or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Cannae Holdings vs. Black Knight
Performance |
Timeline |
Cannae Holdings |
Black Knight |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cannae Holdings and Black Knight Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cannae Holdings and Black Knight
The main advantage of trading using opposite Cannae Holdings and Black Knight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae Holdings position performs unexpectedly, Black Knight 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 Black Knight will offset losses from the drop in Black Knight's long position.Cannae Holdings vs. Canoo Holdings | Cannae Holdings vs. Burgerfi International | Cannae Holdings vs. Nuvve Holding Corp | Cannae Holdings vs. SCOR PK |
Black Knight vs. Paylocity Holdng | Black Knight vs. Paycor HCM | Black Knight vs. Blackbaud | Black Knight vs. Clearwater Analytics Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |