Correlation Between Braze and Pegasystems

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

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

Diversification Opportunities for Braze and Pegasystems

-0.47

Correlation Coefficient

Braze  Pegasystems

Very good diversification

The 3 months correlation between Braze and Pegasystems is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Braze Inc and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems and Braze 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 Braze Inc are associated (or correlated) with Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Braze i.e., Braze and Pegasystems go up and down completely randomly.

Pair Corralation between Braze and Pegasystems

Given the investment horizon of 90 days Braze Inc is expected to under-perform the Pegasystems. In addition to that, Braze is 1.3 times more volatile than Pegasystems. It trades about -0.08 of its total potential returns per unit of risk. Pegasystems is currently generating about 0.14 per unit of volatility. If you would invest  4,649  in Pegasystems on May 7, 2025 and sell it today you would earn a total of  1,061  from holding Pegasystems or generate 22.82% return on investment over 90 days.

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

Braze Inc  vs.  Pegasystems

Braze Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Braze Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pegasystems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pegasystems are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Pegasystems sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Braze and Pegasystems

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

The idea behind Braze Inc and Pegasystems 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.