Correlation Between Blackbaud and CorVel Corp

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

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

Diversification Opportunities for Blackbaud and CorVel Corp

-0.43

Correlation Coefficient

Blackbaud  CorVel Corp

Very good diversification

The 3 months correlation between Blackbaud and CorVel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and CorVel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CorVel Corp and Blackbaud 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 Blackbaud are associated (or correlated) with CorVel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CorVel Corp has no effect on the direction of Blackbaud i.e., Blackbaud and CorVel Corp go up and down completely randomly.

Pair Corralation between Blackbaud and CorVel Corp

Given the investment horizon of 90 days Blackbaud is expected to generate 1.52 times more return on investment than CorVel Corp. However, Blackbaud is 1.52 times more volatile than CorVel Corp. It trades about 0.06 of its potential returns per unit of risk. CorVel Corp is currently generating about -0.2 per unit of risk. If you would invest  6,221  in Blackbaud on May 26, 2025 and sell it today you would earn a total of  425.00  from holding Blackbaud or generate 6.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackbaud  vs.  CorVel Corp

Blackbaud

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Blackbaud are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward-looking signals, Blackbaud may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CorVel Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days CorVel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Blackbaud and CorVel Corp

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

The idea behind Blackbaud and CorVel Corp 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.

Check out your portfolio center.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.