Correlation Between Informatica and ACI Worldwide
Can any of the company-specific risk be diversified away by investing in both Informatica and ACI Worldwide 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 Informatica and ACI Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Informatica and ACI Worldwide, you can compare the effects of market volatilities on Informatica and ACI Worldwide 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 Informatica with a short position of ACI Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Informatica and ACI Worldwide.
Diversification Opportunities for Informatica and ACI Worldwide
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Informatica and ACI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Informatica and ACI Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACI Worldwide and Informatica 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 Informatica are associated (or correlated) with ACI Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACI Worldwide has no effect on the direction of Informatica i.e., Informatica and ACI Worldwide go up and down completely randomly.
Pair Corralation between Informatica and ACI Worldwide
Given the investment horizon of 90 days Informatica is expected to generate 38.58 times less return on investment than ACI Worldwide. But when comparing it to its historical volatility, Informatica is 7.5 times less risky than ACI Worldwide. It trades about 0.08 of its potential returns per unit of risk. ACI Worldwide is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 4,439 in ACI Worldwide on June 10, 2025 and sell it today you would earn a total of 586.00 from holding ACI Worldwide or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Informatica vs. ACI Worldwide
Performance |
| Timeline |
| Informatica |
| ACI Worldwide |
Informatica and ACI Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Informatica and ACI Worldwide
The main advantage of trading using opposite Informatica and ACI Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Informatica position performs unexpectedly, ACI Worldwide 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 ACI Worldwide will offset losses from the drop in ACI Worldwide's long position.| Informatica vs. EverCommerce | Informatica vs. i3 Verticals | Informatica vs. Evertec | Informatica vs. Open Text Corp |
| ACI Worldwide vs. Evertec | ACI Worldwide vs. NetScout Systems | ACI Worldwide vs. AvidXchange Holdings | ACI Worldwide 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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