Correlation Between Bentley Systems and AMSWA Old

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

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

Diversification Opportunities for Bentley Systems and AMSWA Old

0.0

Correlation Coefficient

Bentley Systems  AMSWA Old

Pay attention - limited upside

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

Pair Corralation between Bentley Systems and AMSWA Old

If you would invest (100.00) in AMSWA Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding AMSWA Old 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

Bentley Systems  vs.  AMSWA Old

Bentley Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bentley Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

AMSWA Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMSWA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AMSWA Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bentley Systems and AMSWA Old

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

The idea behind Bentley Systems and AMSWA Old 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.