Correlation Between CLARIVATE PLC and Perficient

Can any of the company-specific risk be diversified away by investing in both CLARIVATE PLC and Perficient 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 CLARIVATE PLC and Perficient into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CLARIVATE PLC and Perficient, you can compare the effects of market volatilities on CLARIVATE PLC and Perficient 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 CLARIVATE PLC with a short position of Perficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLARIVATE PLC and Perficient.

Diversification Opportunities for CLARIVATE PLC and Perficient

0.76

Correlation Coefficient

CLARIVATE PLC  Perficient

Poor diversification

The 3 months correlation between CLARIVATE and Perficient is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CLARIVATE PLC and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient and CLARIVATE PLC 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 CLARIVATE PLC are associated (or correlated) with Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of CLARIVATE PLC i.e., CLARIVATE PLC and Perficient go up and down completely randomly.

Pair Corralation between CLARIVATE PLC and Perficient

Given the investment horizon of 90 days CLARIVATE PLC is expected to generate 0.63 times more return on investment than Perficient. However, CLARIVATE PLC is 1.59 times less risky than Perficient. It trades about -0.21 of its potential returns per unit of risk. Perficient is currently generating about -0.21 per unit of risk. If you would invest  748.00  in CLARIVATE PLC on February 1, 2024 and sell it today you would lose (72.00) from holding CLARIVATE PLC or give up 9.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CLARIVATE PLC  vs.  Perficient

CLARIVATE PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CLARIVATE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perficient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CLARIVATE PLC and Perficient

The main advantage of trading using opposite CLARIVATE PLC and Perficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLARIVATE PLC position performs unexpectedly, Perficient 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 Perficient will offset losses from the drop in Perficient's long position.

The idea behind CLARIVATE PLC and Perficient pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.