Correlation Between Bottomline Technologies and Appian Corp
Can any of the company-specific risk be diversified away by investing in both Bottomline Technologies and Appian Corp 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 Bottomline Technologies and Appian Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bottomline Technologies and Appian Corp, you can compare the effects of market volatilities on Bottomline Technologies and Appian Corp 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 Bottomline Technologies with a short position of Appian Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bottomline Technologies and Appian Corp.
Diversification Opportunities for Bottomline Technologies and Appian Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bottomline and Appian is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bottomline Technologies and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp and Bottomline Technologies 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 Bottomline Technologies are associated (or correlated) with Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Bottomline Technologies i.e., Bottomline Technologies and Appian Corp go up and down completely randomly.
Pair Corralation between Bottomline Technologies and Appian Corp
If you would invest 3,371 in Appian Corp on January 26, 2024 and sell it today you would earn a total of 295.00 from holding Appian Corp or generate 8.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.61% |
Values | Daily Returns |
Bottomline Technologies vs. Appian Corp
Performance |
Timeline |
Bottomline Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Appian Corp |
Bottomline Technologies and Appian Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bottomline Technologies and Appian Corp
The main advantage of trading using opposite Bottomline Technologies and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bottomline Technologies position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.Bottomline Technologies vs. Thor Industries | Bottomline Technologies vs. Dana Inc | Bottomline Technologies vs. U Haul Holding | Bottomline Technologies vs. Gentex |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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