Correlation Between E2open Parent and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both E2open Parent 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 E2open Parent and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E2open Parent Holdings and CCC Intelligent Solutions, you can compare the effects of market volatilities on E2open Parent 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 E2open Parent with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and CCC Intelligent.
Diversification Opportunities for E2open Parent and CCC Intelligent
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between E2open and CCC is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings 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 E2open Parent 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 E2open Parent Holdings 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 E2open Parent i.e., E2open Parent and CCC Intelligent go up and down completely randomly.
Pair Corralation between E2open Parent and CCC Intelligent
Given the investment horizon of 90 days E2open Parent is expected to generate 3.79 times less return on investment than CCC Intelligent. But when comparing it to its historical volatility, E2open Parent Holdings is 4.53 times less risky than CCC Intelligent. It trades about 0.15 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 886.00 in CCC Intelligent Solutions on June 1, 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 | Weak |
| Accuracy | 69.84% |
| Values | Daily Returns |
E2open Parent Holdings vs. CCC Intelligent Solutions
Performance |
| Timeline |
| E2open Parent Holdings |
Risk-Adjusted Performance
Good
Weak | Strong |
| CCC Intelligent Solutions |
E2open Parent and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E2open Parent and CCC Intelligent
The main advantage of trading using opposite E2open Parent and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent 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.| E2open Parent vs. Clearwater Analytics Holdings | E2open Parent vs. Descartes Systems Group | E2open Parent vs. Alight Inc | E2open Parent vs. CCC Intelligent Solutions |
| CCC Intelligent vs. EverCommerce | CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Alight Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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