Correlation Between Bill and Cloudflare

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

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

Diversification Opportunities for Bill and Cloudflare

-0.07

Correlation Coefficient

Bill  Cloudflare

Good diversification

The 3 months correlation between Bill and Cloudflare is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Cloudflare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudflare and Bill 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 Bill Com Holdings are associated (or correlated) with Cloudflare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudflare has no effect on the direction of Bill i.e., Bill and Cloudflare go up and down completely randomly.

Pair Corralation between Bill and Cloudflare

Given the investment horizon of 90 days Bill Com Holdings is expected to generate 1.26 times more return on investment than Cloudflare. However, Bill is 1.26 times more volatile than Cloudflare. It trades about 0.23 of its potential returns per unit of risk. Cloudflare is currently generating about -0.25 per unit of risk. If you would invest  4,719  in Bill Com Holdings on September 11, 2025 and sell it today you would earn a total of  706.00  from holding Bill Com Holdings or generate 14.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Bill Com Holdings  vs.  Cloudflare

Bill Com Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Bill Com Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, Bill may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Cloudflare

Risk-Adjusted Performance

Weakest

Over the last 90 days Cloudflare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Cloudflare is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bill and Cloudflare

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

The idea behind Bill Com Holdings and Cloudflare 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.