Correlation Between Bentley Systems and MicroAlgo

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

By analyzing existing cross correlation between Bentley Systems and MicroAlgo, you can compare the effects of market volatilities on Bentley Systems and MicroAlgo 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 MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and MicroAlgo.

Diversification Opportunities for Bentley Systems and MicroAlgo

0.91

Correlation Coefficient

Bentley Systems  MicroAlgo

Almost no diversification

The 3 months correlation between Bentley and MicroAlgo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Bentley Systems i.e., Bentley Systems and MicroAlgo go up and down completely randomly.

Pair Corralation between Bentley Systems and MicroAlgo

Considering the 90-day investment horizon Bentley Systems is expected to under-perform the MicroAlgo. But the stock apears to be less risky and, when comparing its historical volatility, Bentley Systems is 24.93 times less risky than MicroAlgo. The stock trades about -0.02 of its potential returns per unit of risk. The MicroAlgo is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  678,000  in MicroAlgo on September 14, 2025 and sell it today you would lose (677,317) from holding MicroAlgo or give up 99.9% of portfolio value over 90 days.

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

Bentley Systems  vs.  MicroAlgo

Bentley Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Bentley Systems 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 basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

MicroAlgo

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroAlgo 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bentley Systems and MicroAlgo

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

The idea behind Bentley Systems and MicroAlgo 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.