Correlation Between Willis Lease and Blackbaud
Can any of the company-specific risk be diversified away by investing in both Willis Lease 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 Willis Lease and Blackbaud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willis Lease Finance and Blackbaud, you can compare the effects of market volatilities on Willis Lease 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 Willis Lease with a short position of Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willis Lease and Blackbaud.
Diversification Opportunities for Willis Lease and Blackbaud
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Willis and Blackbaud is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Willis Lease Finance and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud and Willis Lease 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 Willis Lease Finance 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 Willis Lease i.e., Willis Lease and Blackbaud go up and down completely randomly.
Pair Corralation between Willis Lease and Blackbaud
Given the investment horizon of 90 days Willis Lease Finance is expected to under-perform the Blackbaud. In addition to that, Willis Lease is 1.1 times more volatile than Blackbaud. It trades about -0.15 of its total potential returns per unit of risk. Blackbaud is currently generating about -0.12 per unit of volatility. If you would invest 6,671 in Blackbaud on August 29, 2025 and sell it today you would lose (985.00) from holding Blackbaud or give up 14.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willis Lease Finance vs. Blackbaud
Performance |
| Timeline |
| Willis Lease Finance |
| Blackbaud |
Willis Lease and Blackbaud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willis Lease and Blackbaud
The main advantage of trading using opposite Willis Lease and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willis Lease 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.| Willis Lease vs. Prism Software | Willis Lease vs. Galaxy Gaming | Willis Lease vs. Degama Software Solutions | Willis Lease vs. Progress Software |
| Blackbaud vs. Vir Biotechnology | Blackbaud vs. Central Wireless | Blackbaud vs. ERecord Management | Blackbaud vs. Apollo Global Management |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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