Correlation Between Bentley Systems and Doubleverify Holdings

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

Diversification Opportunities for Bentley Systems and Doubleverify Holdings

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bentley and Doubleverify is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems Incorporated and Doubleverify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleverify Holdings and Bentley Systems 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 Bentley Systems Incorporated are associated (or correlated) with Doubleverify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleverify Holdings has no effect on the direction of Bentley Systems i.e., Bentley Systems and Doubleverify Holdings go up and down completely randomly.

Pair Corralation between Bentley Systems and Doubleverify Holdings

Considering the 90-day investment horizon Bentley Systems Incorporated is expected to generate 0.71 times more return on investment than Doubleverify Holdings. However, Bentley Systems Incorporated is 1.42 times less risky than Doubleverify Holdings. It trades about -0.01 of its potential returns per unit of risk. Doubleverify Holdings is currently generating about -0.01 per unit of risk. If you would invest  4,599  in Bentley Systems Incorporated on March 28, 2022 and sell it today you would lose (1,041)  from holding Bentley Systems Incorporated or give up 22.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy89.79%
ValuesDaily Returns

Bentley Systems Incorporated  vs.  Doubleverify Holdings

 Performance (%) 
      Timeline 
Bentley Systems Inco 
Bentley Performance
0 of 100
Over the last 90 days Bentley Systems Incorporated 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 fairly strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0034
Payout Ratio
0.14
Last Split Factor
1:10
Forward Annual Dividend Rate
0.12
Dividend Date
2022-06-23
Ex Dividend Date
2022-06-08
Last Split Date
1996-06-19

Bentley Price Channel

Doubleverify Holdings 
Doubleverify Performance
0 of 100
Over the last 90 days Doubleverify Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Doubleverify Holdings is not utilizing all of its potentials. The new stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Doubleverify Price Channel

Bentley Systems and Doubleverify Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bentley Systems and Doubleverify Holdings

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

Bentley Systems Incorporated

Pair trading matchups for Bentley Systems

The idea behind Bentley Systems Incorporated and Doubleverify Holdings 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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