Correlation Between Bentley Systems and Walkme

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

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

Diversification Opportunities for Bentley Systems and Walkme

0.0

Correlation Coefficient

Bentley Systems  Walkme

Pay attention - limited upside

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

Pair Corralation between Bentley Systems and Walkme

If you would invest (100.00) in Walkme on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Walkme 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.  Walkme

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.

Walkme

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walkme has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Walkme is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bentley Systems and Walkme

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

The idea behind Bentley Systems and Walkme 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.