Correlation Between DATATRAK International and Bentley Systems

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

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

Diversification Opportunities for DATATRAK International and Bentley Systems

0.0

Correlation Coefficient

DATATRAK International  Bentley Systems

Pay attention - limited upside

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

Pair Corralation between DATATRAK International and Bentley Systems

If you would invest (100.00) in DATATRAK International on December 29, 2024 and sell it today you would earn a total of  100.00  from holding DATATRAK International 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

DATATRAK International  vs.  Bentley Systems

DATATRAK International

Risk-Adjusted Performance

Very Weak

Over the last 90 days DATATRAK International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, DATATRAK International is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with DATATRAK International and Bentley Systems

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

The idea behind DATATRAK International and Bentley Systems 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.