Correlation Between Clearwater Analytics and Kelly Services
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Kelly Services 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 Kelly Services 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 Kelly Services A, you can compare the effects of market volatilities on Clearwater Analytics and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Kelly Services.
Diversification Opportunities for Clearwater Analytics and Kelly Services
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearwater and Kelly is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Kelly Services A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services A 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services A has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Kelly Services go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Kelly Services
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to under-perform the Kelly Services. In addition to that, Clearwater Analytics is 1.4 times more volatile than Kelly Services A. It trades about -0.23 of its total potential returns per unit of risk. Kelly Services A is currently generating about -0.31 per unit of volatility. If you would invest 1,440 in Kelly Services A on September 23, 2024 and sell it today you would lose (138.00) from holding Kelly Services A or give up 9.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Kelly Services A
Performance |
| Timeline |
| Clearwater Analytics |
| Kelly Services A |
Clearwater Analytics and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Kelly Services
The main advantage of trading using opposite Clearwater Analytics and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Paycor HCM |
| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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