Correlation Between Pattern Group and Blackbaud

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

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

Diversification Opportunities for Pattern Group and Blackbaud

0.43

Correlation Coefficient

Pattern Group  Blackbaud

Very weak diversification

The 3 months correlation between Pattern and Blackbaud is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pattern Group Series and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and Pattern Group 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 Pattern Group Series 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 Pattern Group i.e., Pattern Group and Blackbaud go up and down completely randomly.

Pair Corralation between Pattern Group and Blackbaud

Given the investment horizon of 90 days Pattern Group Series is expected to generate 3.01 times more return on investment than Blackbaud. However, Pattern Group is 3.01 times more volatile than Blackbaud. It trades about 0.1 of its potential returns per unit of risk. Blackbaud is currently generating about 0.0 per unit of risk. If you would invest  1,563  in Pattern Group Series on August 3, 2025 and sell it today you would earn a total of  200.00  from holding Pattern Group Series or generate 12.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	48.44%
Values	Daily Returns

Pattern Group Series  vs.  Blackbaud

Pattern Group Series

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pattern Group Series are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Pattern Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Blackbaud

Risk-Adjusted Performance

Weak

Over the last 90 days Blackbaud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Blackbaud is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pattern Group and Blackbaud

The main advantage of trading using opposite Pattern Group and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pattern Group 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 Pattern Group Series 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.