Correlation Between NCino and SSC Technologies
Can any of the company-specific risk be diversified away by investing in both NCino and SSC Technologies 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 NCino and SSC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nCino Inc and SSC Technologies Holdings, you can compare the effects of market volatilities on NCino and SSC Technologies 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 NCino with a short position of SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCino and SSC Technologies.
Diversification Opportunities for NCino and SSC Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between NCino and SSC is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and SSC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Holdings and NCino 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 nCino Inc are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Holdings has no effect on the direction of NCino i.e., NCino and SSC Technologies go up and down completely randomly.
Pair Corralation between NCino and SSC Technologies
Given the investment horizon of 90 days nCino Inc is expected to generate 2.04 times more return on investment than SSC Technologies. However, NCino is 2.04 times more volatile than SSC Technologies Holdings. It trades about 0.22 of its potential returns per unit of risk. SSC Technologies Holdings is currently generating about 0.41 per unit of risk. If you would invest 3,819 in nCino Inc on August 28, 2024 and sell it today you would earn a total of 401.00 from holding nCino Inc or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
nCino Inc vs. SSC Technologies Holdings
Performance |
| Timeline |
| nCino Inc |
| SSC Technologies Holdings |
NCino and SSC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCino and SSC Technologies
The main advantage of trading using opposite NCino and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCino position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.The idea behind nCino Inc and SSC Technologies Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SSC Technologies vs. Aspen Technology | SSC Technologies vs. Bentley Systems | SSC Technologies vs. Tyler Technologies | SSC Technologies vs. Blackbaud |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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