Correlation Between Blackbaud and My Size

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

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

Diversification Opportunities for Blackbaud and My Size

-0.51

Correlation Coefficient

Blackbaud  My Size

Excellent diversification

The 3 months correlation between Blackbaud and MYSZ is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size and Blackbaud 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 Blackbaud are associated (or correlated) with My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Blackbaud i.e., Blackbaud and My Size go up and down completely randomly.

Pair Corralation between Blackbaud and My Size

Given the investment horizon of 90 days Blackbaud is expected to generate 2.98 times less return on investment than My Size. But when comparing it to its historical volatility, Blackbaud is 6.59 times less risky than My Size. It trades about 0.04 of its potential returns per unit of risk. My Size is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,032  in My Size on October 5, 2024 and sell it today you would lose (606.00) from holding My Size or give up 58.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackbaud  vs.  My Size

Blackbaud

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackbaud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

My Size

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in My Size are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, My Size showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackbaud and My Size

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

The idea behind Blackbaud and My Size 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.