Correlation Between Clearwater Analytics and Clear Secure
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Clear Secure 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 Clear Secure 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 Clear Secure, you can compare the effects of market volatilities on Clearwater Analytics and Clear Secure 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 Clear Secure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Clear Secure.
Diversification Opportunities for Clearwater Analytics and Clear Secure
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clearwater and Clear is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure 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 Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Clear Secure go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Clear Secure
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.77 times more return on investment than Clear Secure. However, Clearwater Analytics Holdings is 1.3 times less risky than Clear Secure. It trades about 0.05 of its potential returns per unit of risk. Clear Secure is currently generating about 0.03 per unit of risk. If you would invest 1,546 in Clearwater Analytics Holdings on January 18, 2025 and sell it today you would earn a total of 761.00 from holding Clearwater Analytics Holdings or generate 49.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Clear Secure
Performance |
| Timeline |
| Clearwater Analytics |
| Clear Secure |
Clearwater Analytics and Clear Secure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Clear Secure
The main advantage of trading using opposite Clearwater Analytics and Clear Secure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Clear Secure 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 Clear Secure will offset losses from the drop in Clear Secure's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Paycor HCM |
| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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