Correlation Between Secureworks Corp and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both Secureworks Corp 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 Secureworks Corp and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secureworks Corp and CCC Intelligent Solutions, you can compare the effects of market volatilities on Secureworks Corp 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 Secureworks Corp with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secureworks Corp and CCC Intelligent.
Diversification Opportunities for Secureworks Corp and CCC Intelligent
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Secureworks and CCC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Secureworks Corp 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 Secureworks Corp 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 Secureworks Corp 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 Secureworks Corp i.e., Secureworks Corp and CCC Intelligent go up and down completely randomly.
Pair Corralation between Secureworks Corp and CCC Intelligent
Given the investment horizon of 90 days Secureworks Corp is expected to generate 0.09 times more return on investment than CCC Intelligent. However, Secureworks Corp is 11.35 times less risky than CCC Intelligent. It trades about 0.58 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about -0.15 per unit of risk. If you would invest 845.00 in Secureworks Corp on November 18, 2024 and sell it today you would earn a total of 6.00 from holding Secureworks Corp or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Secureworks Corp vs. CCC Intelligent Solutions
Performance |
| Timeline |
| Secureworks Corp |
Risk-Adjusted Performance
Good
Weak | Strong |
| CCC Intelligent Solutions |
Secureworks Corp and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secureworks Corp and CCC Intelligent
The main advantage of trading using opposite Secureworks Corp and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secureworks Corp 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.| Secureworks Corp vs. CSG Systems International | Secureworks Corp vs. Consensus Cloud Solutions | Secureworks Corp vs. Evertec | Secureworks Corp vs. EverCommerce |
| CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Evertec | CCC Intelligent vs. Couchbase |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |