Correlation Between SSC Technologies and Workiva
Can any of the company-specific risk be diversified away by investing in both SSC Technologies and Workiva 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 Workiva 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 Workiva, you can compare the effects of market volatilities on SSC Technologies and Workiva 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 Workiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Workiva.
Diversification Opportunities for SSC Technologies and Workiva
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSC and Workiva is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva 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 Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of SSC Technologies i.e., SSC Technologies and Workiva go up and down completely randomly.
Pair Corralation between SSC Technologies and Workiva
Given the investment horizon of 90 days SSC Technologies Holdings is expected to generate 0.26 times more return on investment than Workiva. However, SSC Technologies Holdings is 3.83 times less risky than Workiva. It trades about 0.34 of its potential returns per unit of risk. Workiva is currently generating about -0.08 per unit of risk. If you would invest 7,566 in SSC Technologies Holdings on October 30, 2024 and sell it today you would earn a total of 503.50 from holding SSC Technologies Holdings or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSC Technologies Holdings vs. Workiva
Performance |
| Timeline |
| SSC Technologies Holdings |
| Workiva |
SSC Technologies and Workiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSC Technologies and Workiva
The main advantage of trading using opposite SSC Technologies and Workiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Technologies position performs unexpectedly, Workiva 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 Workiva will offset losses from the drop in Workiva's long position.| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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