Correlation Between Blackbaud and Paycor HCM

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

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

Diversification Opportunities for Blackbaud and Paycor HCM

-0.74

Correlation Coefficient

Blackbaud  Paycor HCM

Pay attention - limited upside

The 3 months correlation between Blackbaud and Paycor is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Paycor HCM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paycor HCM 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 Paycor HCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paycor HCM has no effect on the direction of Blackbaud i.e., Blackbaud and Paycor HCM go up and down completely randomly.

Pair Corralation between Blackbaud and Paycor HCM

Given the investment horizon of 90 days Blackbaud is expected to generate 3.9 times less return on investment than Paycor HCM. In addition to that, Blackbaud is 12.69 times more volatile than Paycor HCM. It trades about 0.0 of its total potential returns per unit of risk. Paycor HCM is currently generating about 0.12 per unit of volatility. If you would invest  2,244  in Paycor HCM on January 30, 2025 and sell it today you would earn a total of  5.00  from holding Paycor HCM or generate 0.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	54.55%
Values	Daily Returns

Blackbaud  vs.  Paycor HCM

Blackbaud

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackbaud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Paycor HCM

Risk-Adjusted Performance

Good

Over the last 90 days Paycor HCM has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Paycor HCM is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Blackbaud and Paycor HCM

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

The idea behind Blackbaud and Paycor HCM 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.