Correlation Between Bottomline Technologies and BlackBerry

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

By analyzing existing cross correlation between Bottomline Technologies and BlackBerry, you can compare the effects of market volatilities on Bottomline Technologies and BlackBerry 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 BlackBerry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bottomline Technologies and BlackBerry.

Diversification Opportunities for Bottomline Technologies and BlackBerry

0.0

Correlation Coefficient

Bottomline Technologies  BlackBerry

Pay attention - limited upside

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

Pair Corralation between Bottomline Technologies and BlackBerry

If you would invest (100.00) in Bottomline Technologies on January 17, 2024 and sell it today you would earn a total of  100.00  from holding Bottomline Technologies or generate -100.0% return on investment over 90 days.

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

Bottomline Technologies  vs.  BlackBerry

Bottomline Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bottomline Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Bottomline Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BlackBerry

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackBerry 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 May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bottomline Technologies and BlackBerry

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

The idea behind Bottomline Technologies and BlackBerry 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.