Correlation Between Clearwater Analytics and Celestica
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Celestica 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 Celestica 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 Celestica, you can compare the effects of market volatilities on Clearwater Analytics and Celestica 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 Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Celestica.
Diversification Opportunities for Clearwater Analytics and Celestica
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearwater and Celestica is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica 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 Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Celestica go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Celestica
Given the investment horizon of 90 days Clearwater Analytics is expected to generate 1.14 times less return on investment than Celestica. In addition to that, Clearwater Analytics is 1.26 times more volatile than Celestica. It trades about 0.19 of its total potential returns per unit of risk. Celestica is currently generating about 0.27 per unit of volatility. If you would invest 6,978 in Celestica on August 31, 2024 and sell it today you would earn a total of 1,338 from holding Celestica or generate 19.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Celestica
Performance |
| Timeline |
| Clearwater Analytics |
| Celestica |
Clearwater Analytics and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Celestica
The main advantage of trading using opposite Clearwater Analytics and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |