Correlation Between Blackbaud and Workiva

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

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

Diversification Opportunities for Blackbaud and Workiva

0.12

Correlation Coefficient

Blackbaud  Workiva

Average diversification

The 3 months correlation between Blackbaud and Workiva is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Blackbaud and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva 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 Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of Blackbaud i.e., Blackbaud and Workiva go up and down completely randomly.

Pair Corralation between Blackbaud and Workiva

Given the investment horizon of 90 days Blackbaud is expected to under-perform the Workiva. But the stock apears to be less risky and, when comparing its historical volatility, Blackbaud is 1.95 times less risky than Workiva. The stock trades about 0.0 of its potential returns per unit of risk. The Workiva is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  7,174  in Workiva on May 15, 2025 and sell it today you would earn a total of  118.00  from holding Workiva or generate 1.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackbaud  vs.  Workiva

Blackbaud

Risk-Adjusted Performance

Weakest

Over the last 90 days Blackbaud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Blackbaud is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Workiva

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile forward-looking signals, Workiva may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Blackbaud and Workiva

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

The idea behind Blackbaud and Workiva 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.