Correlation Between SSC Technologies and Meridianlink
Can any of the company-specific risk be diversified away by investing in both SSC Technologies and Meridianlink 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 Meridianlink 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 Meridianlink, you can compare the effects of market volatilities on SSC Technologies and Meridianlink 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 Meridianlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Meridianlink.
Diversification Opportunities for SSC Technologies and Meridianlink
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSC and Meridianlink is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and Meridianlink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridianlink 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 Meridianlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridianlink has no effect on the direction of SSC Technologies i.e., SSC Technologies and Meridianlink go up and down completely randomly.
Pair Corralation between SSC Technologies and Meridianlink
Given the investment horizon of 90 days SSC Technologies Holdings is expected to generate 0.52 times more return on investment than Meridianlink. However, SSC Technologies Holdings is 1.91 times less risky than Meridianlink. It trades about 0.33 of its potential returns per unit of risk. Meridianlink is currently generating about -0.12 per unit of risk. If you would invest 7,545 in SSC Technologies Holdings on November 3, 2024 and sell it today you would earn a total of 550.00 from holding SSC Technologies Holdings or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSC Technologies Holdings vs. Meridianlink
Performance |
| Timeline |
| SSC Technologies Holdings |
| Meridianlink |
SSC Technologies and Meridianlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSC Technologies and Meridianlink
The main advantage of trading using opposite SSC Technologies and Meridianlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Technologies position performs unexpectedly, Meridianlink 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 Meridianlink will offset losses from the drop in Meridianlink's long position.| SSC Technologies vs. Aspen Technology | SSC Technologies vs. Bentley Systems | SSC Technologies vs. Tyler Technologies | SSC Technologies vs. Blackbaud |
| Meridianlink vs. CoreCard Corp | Meridianlink vs. PROS Holdings | Meridianlink vs. Enfusion | Meridianlink vs. Paylocity Holdng |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |