Correlation Between CooTek and Bentley SystemsInc

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

By analyzing existing cross correlation between CooTek Inc and Bentley SystemsInc, you can compare the effects of market volatilities on CooTek and Bentley SystemsInc 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 CooTek with a short position of Bentley SystemsInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CooTek and Bentley SystemsInc.

Diversification Opportunities for CooTek and Bentley SystemsInc

0.0

Correlation Coefficient

CooTek  Bentley SystemsInc

Pay attention - limited upside

The 3 months correlation between CooTek and Bentley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CooTek Inc and Bentley SystemsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley SystemsInc and CooTek 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 CooTek Inc are associated (or correlated) with Bentley SystemsInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley SystemsInc has no effect on the direction of CooTek i.e., CooTek and Bentley SystemsInc go up and down completely randomly.

Pair Corralation between CooTek and Bentley SystemsInc

If you would invest  5,119  in Bentley SystemsInc on January 25, 2024 and sell it today you would earn a total of  323.00  from holding Bentley SystemsInc or generate 6.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CooTek Inc  vs.  Bentley SystemsInc

CooTek Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CooTek Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, CooTek is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bentley SystemsInc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bentley SystemsInc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Bentley SystemsInc may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with CooTek and Bentley SystemsInc

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

The idea behind CooTek Inc and Bentley SystemsInc 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.