Correlation Between Innovativ Media and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both Innovativ Media and CCC Intelligent 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 Innovativ Media and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovativ Media Group and CCC Intelligent Solutions, you can compare the effects of market volatilities on Innovativ Media and CCC Intelligent 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 Innovativ Media with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovativ Media and CCC Intelligent.
Diversification Opportunities for Innovativ Media and CCC Intelligent
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innovativ and CCC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Innovativ Media Group and CCC Intelligent Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC Intelligent Solutions and Innovativ Media 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 Innovativ Media Group are associated (or correlated) with CCC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC Intelligent Solutions has no effect on the direction of Innovativ Media i.e., Innovativ Media and CCC Intelligent go up and down completely randomly.
Pair Corralation between Innovativ Media and CCC Intelligent
If you would invest 1,093 in CCC Intelligent Solutions on August 30, 2024 and sell it today you would earn a total of 168.00 from holding CCC Intelligent Solutions or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Innovativ Media Group vs. CCC Intelligent Solutions
Performance |
| Timeline |
| Innovativ Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCC Intelligent Solutions |
Innovativ Media and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovativ Media and CCC Intelligent
The main advantage of trading using opposite Innovativ Media and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovativ Media position performs unexpectedly, CCC Intelligent 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 CCC Intelligent will offset losses from the drop in CCC Intelligent's long position.| Innovativ Media vs. FutureWorld Corp | Innovativ Media vs. Valeo Pharma | Innovativ Media vs. Now Corp | Innovativ Media vs. Vext Science |
| CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Secureworks Corp | CCC Intelligent vs. Evertec |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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