Correlation Between Clearwater Analytics and Amphenol
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Amphenol 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 Clearwater Analytics and Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and Amphenol, you can compare the effects of market volatilities on Clearwater Analytics and Amphenol 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 Clearwater Analytics with a short position of Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Amphenol.
Diversification Opportunities for Clearwater Analytics and Amphenol
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clearwater and Amphenol is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol and Clearwater Analytics 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 Clearwater Analytics Holdings are associated (or correlated) with Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Amphenol go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Amphenol
Given the investment horizon of 90 days Clearwater Analytics is expected to generate 1.11 times less return on investment than Amphenol. In addition to that, Clearwater Analytics is 1.52 times more volatile than Amphenol. It trades about 0.08 of its total potential returns per unit of risk. Amphenol is currently generating about 0.13 per unit of volatility. If you would invest 4,511 in Amphenol on August 26, 2024 and sell it today you would earn a total of 2,918 from holding Amphenol or generate 64.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Amphenol
Performance |
| Timeline |
| Clearwater Analytics |
| Amphenol |
Clearwater Analytics and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Amphenol
The main advantage of trading using opposite Clearwater Analytics and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| Amphenol vs. Plexus Corp | Amphenol vs. Benchmark Electronics | Amphenol vs. Jabil Circuit | Amphenol vs. Sanmina |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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