Correlation Between Pegasystems and Braze

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

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

Diversification Opportunities for Pegasystems and Braze

-0.47

Correlation Coefficient

Pegasystems  Braze

Very good diversification

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

Pair Corralation between Pegasystems and Braze

Given the investment horizon of 90 days Pegasystems is expected to generate 0.76 times more return on investment than Braze. However, Pegasystems is 1.31 times less risky than Braze. It trades about 0.16 of its potential returns per unit of risk. Braze Inc is currently generating about -0.08 per unit of risk. If you would invest  4,649  in Pegasystems on May 7, 2025 and sell it today you would earn a total of  1,200  from holding Pegasystems or generate 25.81% return on investment over 90 days.

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

Pegasystems  vs.  Braze Inc

Pegasystems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pegasystems are ranked lower than 12 (%) 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.

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.

Pair Trading with Pegasystems and Braze

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

The idea behind Pegasystems and Braze Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.