Correlation Between Bentley SystemsInc and Eventbrite

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bentley SystemsInc and Eventbrite 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 Eventbrite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley SystemsInc and Eventbrite Class A, you can compare the effects of market volatilities on Bentley SystemsInc and Eventbrite 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 Eventbrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley SystemsInc and Eventbrite.

Diversification Opportunities for Bentley SystemsInc and Eventbrite

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Bentley and Eventbrite is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bentley SystemsInc and Eventbrite Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventbrite Class A 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 Eventbrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventbrite Class A has no effect on the direction of Bentley SystemsInc i.e., Bentley SystemsInc and Eventbrite go up and down completely randomly.

Pair Corralation between Bentley SystemsInc and Eventbrite

Considering the 90-day investment horizon Bentley SystemsInc is expected to generate 0.5 times more return on investment than Eventbrite. However, Bentley SystemsInc is 2.01 times less risky than Eventbrite. It trades about 0.05 of its potential returns per unit of risk. Eventbrite Class A is currently generating about -0.02 per unit of risk. If you would invest  4,136  in Bentley SystemsInc on December 20, 2023 and sell it today you would earn a total of  751.00  from holding Bentley SystemsInc or generate 18.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bentley SystemsInc  vs.  Eventbrite Class A

 Performance 
       Timeline  
Bentley SystemsInc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Bentley SystemsInc has generated negative risk-adjusted returns adding no value to investors with long positions. 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.
Eventbrite Class A 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Eventbrite Class A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Bentley SystemsInc and Eventbrite Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bentley SystemsInc and Eventbrite

The main advantage of trading using opposite Bentley SystemsInc and Eventbrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley SystemsInc position performs unexpectedly, Eventbrite 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 Eventbrite will offset losses from the drop in Eventbrite's long position.
The idea behind Bentley SystemsInc and Eventbrite Class A 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Stocks Directory
Find actively traded stocks across global markets
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities