Correlation Between CCC Intelligent and MicroAlgo
Can any of the company-specific risk be diversified away by investing in both CCC Intelligent 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 CCC Intelligent and MicroAlgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCC Intelligent Solutions and MicroAlgo, you can compare the effects of market volatilities on CCC Intelligent 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 CCC Intelligent with a short position of MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCC Intelligent and MicroAlgo.
Diversification Opportunities for CCC Intelligent and MicroAlgo
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCC and MicroAlgo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CCC Intelligent Solutions and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo and CCC Intelligent 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 CCC Intelligent Solutions 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 CCC Intelligent i.e., CCC Intelligent and MicroAlgo go up and down completely randomly.
Pair Corralation between CCC Intelligent and MicroAlgo
Given the investment horizon of 90 days CCC Intelligent Solutions is expected to under-perform the MicroAlgo. But the stock apears to be less risky and, when comparing its historical volatility, CCC Intelligent Solutions is 63.3 times less risky than MicroAlgo. The stock trades about -0.31 of its potential returns per unit of risk. The MicroAlgo is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 384.00 in MicroAlgo on January 1, 2025 and sell it today you would earn a total of 1,872 from holding MicroAlgo or generate 487.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCC Intelligent Solutions vs. MicroAlgo
Performance |
| Timeline |
| CCC Intelligent Solutions |
| MicroAlgo |
CCC Intelligent and MicroAlgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCC Intelligent and MicroAlgo
The main advantage of trading using opposite CCC Intelligent and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCC Intelligent 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.| CCC Intelligent vs. CSG Systems International | ||
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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