Correlation Between Blackbaud and MaxLinear
Can any of the company-specific risk be diversified away by investing in both Blackbaud and MaxLinear 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 MaxLinear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackbaud and MaxLinear, you can compare the effects of market volatilities on Blackbaud and MaxLinear 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 MaxLinear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackbaud and MaxLinear.
Diversification Opportunities for Blackbaud and MaxLinear
Poor diversification
The 3 months correlation between Blackbaud and MaxLinear is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and MaxLinear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxLinear 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 MaxLinear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxLinear has no effect on the direction of Blackbaud i.e., Blackbaud and MaxLinear go up and down completely randomly.
Pair Corralation between Blackbaud and MaxLinear
Given the investment horizon of 90 days Blackbaud is expected to generate 18.87 times less return on investment than MaxLinear. But when comparing it to its historical volatility, Blackbaud is 1.92 times less risky than MaxLinear. It trades about 0.03 of its potential returns per unit of risk. MaxLinear is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,015 in MaxLinear on April 26, 2025 and sell it today you would earn a total of 710.00 from holding MaxLinear or generate 69.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Blackbaud vs. MaxLinear
Performance |
Timeline |
Blackbaud |
MaxLinear |
Blackbaud and MaxLinear Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackbaud and MaxLinear
The main advantage of trading using opposite Blackbaud and MaxLinear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackbaud position performs unexpectedly, MaxLinear 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 MaxLinear will offset losses from the drop in MaxLinear's long position.Blackbaud vs. CommVault Systems | Blackbaud vs. Manhattan Associates | Blackbaud vs. Agilysys | Blackbaud vs. ACI Worldwide |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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