Correlation Between Eventbrite and Bentley SystemsInc

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

Diversification Opportunities for Eventbrite and Bentley SystemsInc

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Eventbrite and Bentley is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eventbrite Class A and Bentley SystemsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley SystemsInc and Eventbrite 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 Eventbrite Class A 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 Eventbrite i.e., Eventbrite and Bentley SystemsInc go up and down completely randomly.

Pair Corralation between Eventbrite and Bentley SystemsInc

Allowing for the 90-day total investment horizon Eventbrite Class A is expected to under-perform the Bentley SystemsInc. In addition to that, Eventbrite is 3.3 times more volatile than Bentley SystemsInc. It trades about -0.22 of its total potential returns per unit of risk. Bentley SystemsInc is currently generating about -0.13 per unit of volatility. If you would invest  5,233  in Bentley SystemsInc on December 19, 2023 and sell it today you would lose (346.00) from holding Bentley SystemsInc or give up 6.61% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Eventbrite Class A  vs.  Bentley SystemsInc

 Performance 
       Timeline  
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 

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 recent stock price disturbance, may contribute to short-term losses for the investors.

Eventbrite and Bentley SystemsInc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eventbrite and Bentley SystemsInc

The main advantage of trading using opposite Eventbrite and Bentley SystemsInc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventbrite 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 Eventbrite Class A 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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