Correlation Between SSC Technologies and Dow Jones
Can any of the company-specific risk be diversified away by investing in both SSC Technologies and Dow Jones 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 SSC Technologies and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Technologies Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on SSC Technologies and Dow Jones 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 SSC Technologies with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Dow Jones.
Diversification Opportunities for SSC Technologies and Dow Jones
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSC and Dow is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and SSC Technologies 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 SSC Technologies Holdings are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of SSC Technologies i.e., SSC Technologies and Dow Jones go up and down completely randomly.
Pair Corralation between SSC Technologies and Dow Jones
Given the investment horizon of 90 days SSC Technologies Holdings is expected to generate 1.43 times more return on investment than Dow Jones. However, SSC Technologies is 1.43 times more volatile than Dow Jones Industrial. It trades about 0.33 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.36 per unit of risk. If you would invest 7,578 in SSC Technologies Holdings on November 1, 2024 and sell it today you would earn a total of 542.00 from holding SSC Technologies Holdings or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
SSC Technologies Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
SSC Technologies and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SSC Technologies Holdings
Pair trading matchups for SSC Technologies
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SSC Technologies and Dow Jones
The main advantage of trading using opposite SSC Technologies and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Technologies position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| SSC Technologies vs. Aspen Technology | SSC Technologies vs. Bentley Systems | SSC Technologies vs. Tyler Technologies | SSC Technologies vs. Blackbaud |
| Dow Jones vs. WEC Energy Group | Dow Jones vs. Pure Cycle | Dow Jones vs. Tandy Leather Factory | Dow Jones vs. Tapestry |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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