Correlation Between Bentley Systems and Duck Creek

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Can any of the company-specific risk be diversified away by investing in both Bentley Systems 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 Systems 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 Systems Incorporated and Duck Creek Technologies, you can compare the effects of market volatilities on Bentley Systems 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 Systems with a short position of Duck Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Duck Creek.

Diversification Opportunities for Bentley Systems and Duck Creek

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Bentley and Duck Creek is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems Incorporated 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 Systems 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 Systems Incorporated 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 Systems i.e., Bentley Systems and Duck Creek go up and down completely randomly.

Pair Corralation between Bentley Systems and Duck Creek

Considering the 90-day investment horizon Bentley Systems Incorporated is expected to under-perform the Duck Creek. In addition to that, Bentley Systems is 1.11 times more volatile than Duck Creek Technologies. It trades about -0.11 of its total potential returns per unit of risk. Duck Creek Technologies is currently generating about -0.1 per unit of volatility. If you would invest  2,049  in Duck Creek Technologies on February 15, 2022 and sell it today you would lose (367.00)  from holding Duck Creek Technologies or give up 17.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bentley Systems Incorporated  vs.  Duck Creek Technologies

 Performance (%) 
      Timeline 
Bentley Systems Inco 
Bentley Performance
0 of 100
Over the last 90 days Bentley Systems Incorporated 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 basic indicators remain fairly strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Bentley Price Channel

Duck Creek Technologies 
Duck Creek Performance
0 of 100
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 weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in June 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Duck Creek Price Channel

Bentley Systems and Duck Creek Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bentley Systems and Duck Creek

The main advantage of trading using opposite Bentley Systems and Duck Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems 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 Systems Incorporated 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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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