Correlation Between Bentley SystemsInc and CDK Global
Can any of the company-specific risk be diversified away by investing in both Bentley SystemsInc and CDK Global 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 Bentley SystemsInc and CDK Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley SystemsInc and CDK Global Holdings, you can compare the effects of market volatilities on Bentley SystemsInc and CDK Global 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 Bentley SystemsInc with a short position of CDK Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley SystemsInc and CDK Global.
Diversification Opportunities for Bentley SystemsInc and CDK Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bentley and CDK is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bentley SystemsInc and CDK Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDK Global Holdings and Bentley SystemsInc 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 Bentley SystemsInc are associated (or correlated) with CDK Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDK Global Holdings has no effect on the direction of Bentley SystemsInc i.e., Bentley SystemsInc and CDK Global go up and down completely randomly.
Pair Corralation between Bentley SystemsInc and CDK Global
If you would invest 3,836 in Bentley SystemsInc on December 20, 2023 and sell it today you would earn a total of 1,051 from holding Bentley SystemsInc or generate 27.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.3% |
Values | Daily Returns |
Bentley SystemsInc vs. CDK Global Holdings
Performance |
Timeline |
Bentley SystemsInc |
CDK Global Holdings |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Bentley SystemsInc and CDK Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bentley SystemsInc and CDK Global
The main advantage of trading using opposite Bentley SystemsInc and CDK Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley SystemsInc position performs unexpectedly, CDK Global 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 CDK Global will offset losses from the drop in CDK Global's long position.Bentley SystemsInc vs. Eventbrite Class A | Bentley SystemsInc vs. Kingsoft Cloud HoldingsLtd | Bentley SystemsInc vs. C3 Ai Inc | Bentley SystemsInc vs. Daily Journal Corp |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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