Correlation Between Science Applications and CLARIVATE PLC
Can any of the company-specific risk be diversified away by investing in both Science Applications and CLARIVATE PLC 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 Science Applications and CLARIVATE PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science Applications International and CLARIVATE PLC, you can compare the effects of market volatilities on Science Applications and CLARIVATE PLC 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 Science Applications with a short position of CLARIVATE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and CLARIVATE PLC.
Diversification Opportunities for Science Applications and CLARIVATE PLC
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Science and CLARIVATE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and CLARIVATE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLARIVATE PLC and Science Applications 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 Science Applications International are associated (or correlated) with CLARIVATE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLARIVATE PLC has no effect on the direction of Science Applications i.e., Science Applications and CLARIVATE PLC go up and down completely randomly.
Pair Corralation between Science Applications and CLARIVATE PLC
Given the investment horizon of 90 days Science Applications is expected to generate 9.34 times less return on investment than CLARIVATE PLC. But when comparing it to its historical volatility, Science Applications International is 1.68 times less risky than CLARIVATE PLC. It trades about 0.01 of its potential returns per unit of risk. CLARIVATE PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 403.00 in CLARIVATE PLC on March 12, 2025 and sell it today you would earn a total of 31.00 from holding CLARIVATE PLC or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Science Applications Internati vs. CLARIVATE PLC
Performance |
| Timeline |
| Science Applications |
| CLARIVATE PLC |
Science Applications and CLARIVATE PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Applications and CLARIVATE PLC
The main advantage of trading using opposite Science Applications and CLARIVATE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Applications position performs unexpectedly, CLARIVATE PLC 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 CLARIVATE PLC will offset losses from the drop in CLARIVATE PLC's long position.| Science Applications vs. CACI International | Science Applications vs. CDW Corp | Science Applications vs. Gartner | Science Applications vs. Jack Henry Associates |
| CLARIVATE PLC vs. Genpact Limited | CLARIVATE PLC vs. ExlService Holdings | CLARIVATE PLC vs. Science Applications International | CLARIVATE PLC vs. WNS Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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