Correlation Between Walkme and Bentley SystemsInc

Can any of the company-specific risk be diversified away by investing in both Walkme and Bentley SystemsInc 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 Walkme and Bentley SystemsInc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Walkme and Bentley SystemsInc, you can compare the effects of market volatilities on Walkme and Bentley SystemsInc 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 Walkme with a short position of Bentley SystemsInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walkme and Bentley SystemsInc.

Diversification Opportunities for Walkme and Bentley SystemsInc

0.09

Correlation Coefficient

Walkme  Bentley SystemsInc

Significant diversification

The 3 months correlation between Walkme and Bentley is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walkme and Bentley SystemsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley SystemsInc and Walkme 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 Walkme are associated (or correlated) with Bentley SystemsInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley SystemsInc has no effect on the direction of Walkme i.e., Walkme and Bentley SystemsInc go up and down completely randomly.

Pair Corralation between Walkme and Bentley SystemsInc

Given the investment horizon of 90 days Walkme is expected to under-perform the Bentley SystemsInc. But the stock apears to be less risky and, when comparing its historical volatility, Walkme is 1.1 times less risky than Bentley SystemsInc. The stock trades about -0.05 of its potential returns per unit of risk. The Bentley SystemsInc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  4,868  in Bentley SystemsInc on February 8, 2024 and sell it today you would earn a total of  625.00  from holding Bentley SystemsInc or generate 12.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Walkme  vs.  Bentley SystemsInc

Walkme

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Walkme has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in June 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bentley SystemsInc

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bentley SystemsInc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Bentley SystemsInc may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Walkme and Bentley SystemsInc

The main advantage of trading using opposite Walkme and Bentley SystemsInc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walkme position performs unexpectedly, Bentley SystemsInc 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 SystemsInc will offset losses from the drop in Bentley SystemsInc's long position.

The idea behind Walkme and Bentley SystemsInc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.