Correlation Between Braze and ON24

Can any of the company-specific risk be diversified away by investing in both Braze and ON24 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 Braze and ON24 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Braze Inc and ON24 Inc, you can compare the effects of market volatilities on Braze and ON24 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 Braze with a short position of ON24. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braze and ON24.

Diversification Opportunities for Braze and ON24

0.82

Correlation Coefficient

Braze  ON24

Very poor diversification

The 3 months correlation between Braze and ON24 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Braze Inc and ON24 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ON24 Inc and Braze 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 Braze Inc are associated (or correlated) with ON24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ON24 Inc has no effect on the direction of Braze i.e., Braze and ON24 go up and down completely randomly.

Pair Corralation between Braze and ON24

Given the investment horizon of 90 days Braze Inc is expected to generate 1.49 times more return on investment than ON24. However, Braze is 1.49 times more volatile than ON24 Inc. It trades about -0.06 of its potential returns per unit of risk. ON24 Inc is currently generating about -0.1 per unit of risk. If you would invest  4,290  in Braze Inc on December 27, 2024 and sell it today you would lose (557.00) from holding Braze Inc or give up 12.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Braze Inc  vs.  ON24 Inc

Braze Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Braze Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

ON24 Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ON24 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Braze and ON24

The main advantage of trading using opposite Braze and ON24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braze position performs unexpectedly, ON24 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 ON24 will offset losses from the drop in ON24's long position.

The idea behind Braze Inc and ON24 Inc 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 Anywhere module to track or share privately all of your investments from the convenience of any device.