Correlation Between DoubleVerify Holdings and Blackbaud

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

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

Diversification Opportunities for DoubleVerify Holdings and Blackbaud

0.16

Correlation Coefficient

DoubleVerify Holdings  Blackbaud

Average diversification

The 3 months correlation between DoubleVerify and Blackbaud is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and DoubleVerify Holdings 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 DoubleVerify Holdings 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 DoubleVerify Holdings i.e., DoubleVerify Holdings and Blackbaud go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and Blackbaud

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to generate 2.99 times less return on investment than Blackbaud. In addition to that, DoubleVerify Holdings is 1.65 times more volatile than Blackbaud. It trades about 0.01 of its total potential returns per unit of risk. Blackbaud is currently generating about 0.05 per unit of volatility. If you would invest  6,111  in Blackbaud on August 31, 2024 and sell it today you would earn a total of  2,283  from holding Blackbaud or generate 37.36% return on investment over 90 days.

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

DoubleVerify Holdings  vs.  Blackbaud

DoubleVerify Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleVerify Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, DoubleVerify Holdings may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Blackbaud

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackbaud are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Blackbaud is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DoubleVerify Holdings and Blackbaud

The main advantage of trading using opposite DoubleVerify Holdings and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleVerify Holdings 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 DoubleVerify Holdings 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.