Correlation Between Bentley SystemsInc and Duck Creek

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

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

Diversification Opportunities for Bentley SystemsInc and Duck Creek

-0.21

Correlation Coefficient

Bentley SystemsInc  Duck Creek

Very good diversification

The 3 months correlation between Bentley and Duck is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bentley SystemsInc and Duck Creek Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duck Creek Technologies 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 Duck Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duck Creek Technologies has no effect on the direction of Bentley SystemsInc i.e., Bentley SystemsInc and Duck Creek go up and down completely randomly.

Pair Corralation between Bentley SystemsInc and Duck Creek

If you would invest  5,079  in Bentley SystemsInc on January 20, 2024 and sell it today you would earn a total of  167.00  from holding Bentley SystemsInc or generate 3.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Bentley SystemsInc  vs.  Duck Creek Technologies

Bentley SystemsInc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bentley SystemsInc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Bentley SystemsInc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Duck Creek Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duck Creek Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Duck Creek is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bentley SystemsInc and Duck Creek

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

The idea behind Bentley SystemsInc and Duck Creek Technologies 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.

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.