Correlation Between Evertec and Bottomline Technologies
Can any of the company-specific risk be diversified away by investing in both Evertec and Bottomline Technologies 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 Evertec and Bottomline Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertec and Bottomline Technologies, you can compare the effects of market volatilities on Evertec and Bottomline Technologies 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 Evertec with a short position of Bottomline Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertec and Bottomline Technologies.
Diversification Opportunities for Evertec and Bottomline Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evertec and Bottomline is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Evertec and Bottomline Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bottomline Technologies and Evertec 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 Evertec are associated (or correlated) with Bottomline Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bottomline Technologies has no effect on the direction of Evertec i.e., Evertec and Bottomline Technologies go up and down completely randomly.
Pair Corralation between Evertec and Bottomline Technologies
If you would invest 5,699 in Bottomline Technologies on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Bottomline Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.54% |
| Values | Daily Returns |
Evertec vs. Bottomline Technologies
Performance |
| Timeline |
| Evertec |
| Bottomline Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evertec and Bottomline Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertec and Bottomline Technologies
The main advantage of trading using opposite Evertec and Bottomline Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertec position performs unexpectedly, Bottomline Technologies 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 Bottomline Technologies will offset losses from the drop in Bottomline Technologies' long position.| Evertec vs. Appen Limited | Evertec vs. Value Exchange International | Evertec vs. Appen Limited | Evertec vs. Deveron Corp |
| Bottomline Technologies vs. NH Foods Ltd | Bottomline Technologies vs. The Coca Cola | Bottomline Technologies vs. ScanSource | Bottomline Technologies vs. Ambev SA ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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