Correlation Between Workiva and Banzai International

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Can any of the company-specific risk be diversified away by investing in both Workiva and Banzai International 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 Workiva and Banzai International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Banzai International, you can compare the effects of market volatilities on Workiva and Banzai International 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 Workiva with a short position of Banzai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Banzai International.

Diversification Opportunities for Workiva and Banzai International

WorkivaBanzaiDiversified AwayWorkivaBanzaiDiversified Away100%
-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Workiva and Banzai is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Banzai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banzai International and Workiva 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 Workiva are associated (or correlated) with Banzai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banzai International has no effect on the direction of Workiva i.e., Workiva and Banzai International go up and down completely randomly.

Pair Corralation between Workiva and Banzai International

Allowing for the 90-day total investment horizon Workiva is expected to generate 0.13 times more return on investment than Banzai International. However, Workiva is 7.66 times less risky than Banzai International. It trades about 0.3 of its potential returns per unit of risk. Banzai International is currently generating about -0.08 per unit of risk. If you would invest  8,048  in Workiva on September 27, 2024 and sell it today you would earn a total of  3,270  from holding Workiva or generate 40.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Workiva  vs.  Banzai International

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -50050100
JavaScript chart by amCharts 3.21.15WK BNZI
       Timeline  
Workiva 

Risk-Adjusted Performance

23 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Workiva disclosed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec7580859095100105110115
Banzai International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Banzai International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec23456

Workiva and Banzai International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.39-4.04-2.68-1.330.01.543.134.716.37.89 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15WK BNZI
       Returns  

Pair Trading with Workiva and Banzai International

The main advantage of trading using opposite Workiva and Banzai International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva position performs unexpectedly, Banzai International 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 Banzai International will offset losses from the drop in Banzai International's long position.
The idea behind Workiva and Banzai International 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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