Correlation Between Cognyte Software and Blackbaud

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

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

Diversification Opportunities for Cognyte Software and Blackbaud

-0.28

Correlation Coefficient

Cognyte Software  Blackbaud

Very good diversification

The 3 months correlation between Cognyte and Blackbaud is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cognyte Software and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and Cognyte Software 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 Cognyte Software are associated (or correlated) with Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of Cognyte Software i.e., Cognyte Software and Blackbaud go up and down completely randomly.

Pair Corralation between Cognyte Software and Blackbaud

Given the investment horizon of 90 days Cognyte Software is expected to under-perform the Blackbaud. In addition to that, Cognyte Software is 1.77 times more volatile than Blackbaud. It trades about -0.03 of its total potential returns per unit of risk. Blackbaud is currently generating about 0.07 per unit of volatility. If you would invest  6,109  in Blackbaud on May 1, 2025 and sell it today you would earn a total of  341.00  from holding Blackbaud or generate 5.58% return on investment over 90 days.

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

Cognyte Software  vs.  Blackbaud

Cognyte Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cognyte Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cognyte Software is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Blackbaud

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blackbaud are ranked lower than 5 (%) 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 August 2025.

Pair Trading with Cognyte Software and Blackbaud

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

The idea behind Cognyte Software and Blackbaud 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.