Correlation Between Bottomline Technologies and Blackline

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

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

Diversification Opportunities for Bottomline Technologies and Blackline

0.0

Correlation Coefficient

Bottomline Technologies  Blackline

Pay attention - limited upside

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

Pair Corralation between Bottomline Technologies and Blackline

If you would invest  5,995  in Blackline on January 26, 2024 and sell it today you would lose (2.00) from holding Blackline or give up 0.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Bottomline Technologies  vs.  Blackline

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

Blackline

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackline are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Blackline is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bottomline Technologies and Blackline

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

The idea behind Bottomline Technologies and Blackline 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.