Correlation Between Pharming Group and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both Pharming Group 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 Pharming Group and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pharming Group NV and CCC Intelligent Solutions, you can compare the effects of market volatilities on Pharming Group 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 Pharming Group with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pharming Group and CCC Intelligent.
Diversification Opportunities for Pharming Group and CCC Intelligent
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pharming and CCC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pharming Group NV 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 Pharming Group 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 Pharming Group NV 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 Pharming Group i.e., Pharming Group and CCC Intelligent go up and down completely randomly.
Pair Corralation between Pharming Group and CCC Intelligent
Given the investment horizon of 90 days Pharming Group NV is expected to generate 2.09 times more return on investment than CCC Intelligent. However, Pharming Group is 2.09 times more volatile than CCC Intelligent Solutions. It trades about 0.08 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about -0.11 per unit of risk. If you would invest 1,427 in Pharming Group NV on October 10, 2025 and sell it today you would earn a total of 259.00 from holding Pharming Group NV or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 26.23% |
| Values | Daily Returns |
Pharming Group NV vs. CCC Intelligent Solutions
Performance |
| Timeline |
| Pharming Group NV |
| CCC Intelligent Solutions |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Pharming Group and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pharming Group and CCC Intelligent
The main advantage of trading using opposite Pharming Group and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pharming Group 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.| Pharming Group vs. Tango Therapeutics | Pharming Group vs. Septerna Common Stock | Pharming Group vs. Arbutus Biopharma Corp | Pharming Group vs. Fortrea Holdings |
| CCC Intelligent vs. SentinelOne | CCC Intelligent vs. Wex Inc | CCC Intelligent vs. Shift4 Payments | CCC Intelligent vs. Jfrog |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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