Correlation Between Fair Isaac and Blackbaud

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

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

Diversification Opportunities for Fair Isaac and Blackbaud

-0.2

Correlation Coefficient

Fair Isaac  Blackbaud

Good diversification

The 3 months correlation between Fair and Blackbaud is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and Fair Isaac 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 Fair Isaac 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 Fair Isaac i.e., Fair Isaac and Blackbaud go up and down completely randomly.

Pair Corralation between Fair Isaac and Blackbaud

Given the investment horizon of 90 days Fair Isaac is expected to under-perform the Blackbaud. In addition to that, Fair Isaac is 1.6 times more volatile than Blackbaud. It trades about -0.17 of its total potential returns per unit of risk. Blackbaud is currently generating about 0.0 per unit of volatility. If you would invest  6,455  in Blackbaud on May 10, 2025 and sell it today you would lose (68.00) from holding Blackbaud or give up 1.05% of portfolio value over 90 days.

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

Fair Isaac  vs.  Blackbaud

Fair Isaac

Risk-Adjusted Performance

Weakest

Over the last 90 days Fair Isaac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

Pair Trading with Fair Isaac and Blackbaud

The main advantage of trading using opposite Fair Isaac and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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 Fair Isaac 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.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.