Correlation Between Clearwater Analytics and LYFT
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and LYFT 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 LYFT 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 LYFT Inc, you can compare the effects of market volatilities on Clearwater Analytics and LYFT 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 LYFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and LYFT.
Diversification Opportunities for Clearwater Analytics and LYFT
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearwater and LYFT is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and LYFT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYFT Inc 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 LYFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYFT Inc has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and LYFT go up and down completely randomly.
Pair Corralation between Clearwater Analytics and LYFT
Given the investment horizon of 90 days Clearwater Analytics is expected to generate 1.01 times less return on investment than LYFT. But when comparing it to its historical volatility, Clearwater Analytics Holdings is 1.49 times less risky than LYFT. It trades about 0.24 of its potential returns per unit of risk. LYFT Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,366 in LYFT Inc on August 24, 2024 and sell it today you would earn a total of 263.00 from holding LYFT Inc or generate 19.25% 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. LYFT Inc
Performance |
| Timeline |
| Clearwater Analytics |
| LYFT Inc |
Clearwater Analytics and LYFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and LYFT
The main advantage of trading using opposite Clearwater Analytics and LYFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, LYFT 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 LYFT will offset losses from the drop in LYFT's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| LYFT vs. Manhattan Associates | LYFT vs. Paycom Soft | LYFT vs. Clearwater Analytics Holdings | LYFT vs. Procore Technologies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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