Correlation Between CLARIVATE PLC and I3 Verticals

Can any of the company-specific risk be diversified away by investing in both CLARIVATE PLC and I3 Verticals 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 I3 Verticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CLARIVATE PLC and i3 Verticals, you can compare the effects of market volatilities on CLARIVATE PLC and I3 Verticals 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 I3 Verticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLARIVATE PLC and I3 Verticals.

Diversification Opportunities for CLARIVATE PLC and I3 Verticals

0.31

Correlation Coefficient

CLARIVATE PLC  I3 Verticals

Weak diversification

The 3 months correlation between CLARIVATE and IIIV is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding CLARIVATE PLC and i3 Verticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Verticals 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 I3 Verticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Verticals has no effect on the direction of CLARIVATE PLC i.e., CLARIVATE PLC and I3 Verticals go up and down completely randomly.

Pair Corralation between CLARIVATE PLC and I3 Verticals

Given the investment horizon of 90 days CLARIVATE PLC is expected to under-perform the I3 Verticals. But the stock apears to be less risky and, when comparing its historical volatility, CLARIVATE PLC is 1.01 times less risky than I3 Verticals. The stock trades about -0.06 of its potential returns per unit of risk. The i3 Verticals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,539  in i3 Verticals on May 2, 2025 and sell it today you would earn a total of  309.00  from holding i3 Verticals or generate 12.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

CLARIVATE PLC  vs.  i3 Verticals

CLARIVATE PLC

Risk-Adjusted Performance

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 latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

i3 Verticals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in i3 Verticals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, I3 Verticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLARIVATE PLC and I3 Verticals

The main advantage of trading using opposite CLARIVATE PLC and I3 Verticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLARIVATE PLC position performs unexpectedly, I3 Verticals 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 I3 Verticals will offset losses from the drop in I3 Verticals' long position.

The idea behind CLARIVATE PLC and i3 Verticals 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.