Correlation Between Cellebrite and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both Cellebrite and CCC Intelligent 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 Cellebrite and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellebrite DI Equity and CCC Intelligent Solutions, you can compare the effects of market volatilities on Cellebrite and CCC Intelligent 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 Cellebrite with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellebrite and CCC Intelligent.
Diversification Opportunities for Cellebrite and CCC Intelligent
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cellebrite and CCC is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cellebrite DI Equity and CCC Intelligent Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC Intelligent Solutions and Cellebrite 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 Cellebrite DI Equity are associated (or correlated) with CCC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC Intelligent Solutions has no effect on the direction of Cellebrite i.e., Cellebrite and CCC Intelligent go up and down completely randomly.
Pair Corralation between Cellebrite and CCC Intelligent
Assuming the 90 days horizon Cellebrite DI Equity is expected to generate 4.06 times more return on investment than CCC Intelligent. However, Cellebrite is 4.06 times more volatile than CCC Intelligent Solutions. It trades about 0.13 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.03 per unit of risk. If you would invest 85.00 in Cellebrite DI Equity on August 31, 2024 and sell it today you would earn a total of 430.00 from holding Cellebrite DI Equity or generate 505.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.41% |
| Values | Daily Returns |
Cellebrite DI Equity vs. CCC Intelligent Solutions
Performance |
| Timeline |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCC Intelligent Solutions |
Cellebrite and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellebrite and CCC Intelligent
The main advantage of trading using opposite Cellebrite and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellebrite position performs unexpectedly, CCC Intelligent 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 CCC Intelligent will offset losses from the drop in CCC Intelligent's long position.| Cellebrite vs. Lululemon Athletica | Cellebrite vs. Kite Realty Group | Cellebrite vs. Fast Retailing Co | Cellebrite vs. SEI Investments |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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