Correlation Between CCC Intelligent and E2open Parent
Can any of the company-specific risk be diversified away by investing in both CCC Intelligent and E2open Parent 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 CCC Intelligent and E2open Parent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCC Intelligent Solutions and E2open Parent Holdings, you can compare the effects of market volatilities on CCC Intelligent and E2open Parent 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 CCC Intelligent with a short position of E2open Parent. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCC Intelligent and E2open Parent.
Diversification Opportunities for CCC Intelligent and E2open Parent
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CCC and E2open is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CCC Intelligent Solutions and E2open Parent Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E2open Parent Holdings and CCC Intelligent 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 CCC Intelligent Solutions are associated (or correlated) with E2open Parent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E2open Parent Holdings has no effect on the direction of CCC Intelligent i.e., CCC Intelligent and E2open Parent go up and down completely randomly.
Pair Corralation between CCC Intelligent and E2open Parent
Given the investment horizon of 90 days CCC Intelligent Solutions is expected to generate 4.53 times more return on investment than E2open Parent. However, CCC Intelligent is 4.53 times more volatile than E2open Parent Holdings. It trades about 0.13 of its potential returns per unit of risk. E2open Parent Holdings is currently generating about 0.15 per unit of risk. If you would invest 886.00 in CCC Intelligent Solutions on May 31, 2025 and sell it today you would earn a total of 104.00 from holding CCC Intelligent Solutions or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 69.84% |
| Values | Daily Returns |
CCC Intelligent Solutions vs. E2open Parent Holdings
Performance |
| Timeline |
| CCC Intelligent Solutions |
| E2open Parent Holdings |
Risk-Adjusted Performance
Good
Weak | Strong |
CCC Intelligent and E2open Parent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCC Intelligent and E2open Parent
The main advantage of trading using opposite CCC Intelligent and E2open Parent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCC Intelligent position performs unexpectedly, E2open Parent 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 E2open Parent will offset losses from the drop in E2open Parent's long position.| CCC Intelligent vs. EverCommerce | CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Alight Inc |
| E2open Parent vs. Clearwater Analytics Holdings | E2open Parent vs. Descartes Systems Group | E2open Parent vs. Alight Inc | E2open Parent vs. CCC Intelligent Solutions |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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