Correlation Between CLARIVATE PLC and Ingram Micro

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

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

Diversification Opportunities for CLARIVATE PLC and Ingram Micro

0.62

Correlation Coefficient

CLARIVATE PLC  Ingram Micro

Poor diversification

The 3 months correlation between CLARIVATE and Ingram is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding CLARIVATE PLC and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of CLARIVATE PLC i.e., CLARIVATE PLC and Ingram Micro go up and down completely randomly.

Pair Corralation between CLARIVATE PLC and Ingram Micro

Given the investment horizon of 90 days CLARIVATE PLC is expected to generate 1.25 times more return on investment than Ingram Micro. However, CLARIVATE PLC is 1.25 times more volatile than Ingram Micro Holding. It trades about 0.01 of its potential returns per unit of risk. Ingram Micro Holding is currently generating about -0.04 per unit of risk. If you would invest  430.00  in CLARIVATE PLC on May 18, 2025 and sell it today you would earn a total of  1.00  from holding CLARIVATE PLC or generate 0.23% return on investment over 90 days.

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

CLARIVATE PLC  vs.  Ingram Micro Holding

CLARIVATE PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CLARIVATE PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CLARIVATE PLC is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Ingram Micro Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Ingram Micro Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Ingram Micro is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CLARIVATE PLC and Ingram Micro

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

The idea behind CLARIVATE PLC and Ingram Micro Holding 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.