Correlation Between Endava and Backblaze

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

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

Diversification Opportunities for Endava and Backblaze

0.91

Correlation Coefficient

Endava  Backblaze

Almost no diversification

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

Pair Corralation between Endava and Backblaze

Given the investment horizon of 90 days Endava is expected to generate 0.83 times more return on investment than Backblaze. However, Endava is 1.21 times less risky than Backblaze. It trades about -0.1 of its potential returns per unit of risk. Backblaze is currently generating about -0.15 per unit of risk. If you would invest  897.00  in Endava on October 7, 2025 and sell it today you would lose (258.00) from holding Endava or give up 28.76% of portfolio value over 90 days.

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

Endava  vs.  Backblaze

Endava

Risk-Adjusted Performance

Weakest

Over the last 90 days Endava has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Backblaze

Risk-Adjusted Performance

Weakest

Over the last 90 days Backblaze 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 February 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Endava and Backblaze

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

The idea behind Endava and Backblaze 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.