Correlation Between E2open Parent and CCC Intelligent

Can any of the company-specific risk be diversified away by investing in both E2open Parent 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 E2open Parent and CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E2open Parent Holdings and CCC Intelligent Solutions, you can compare the effects of market volatilities on E2open Parent 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 E2open Parent with a short position of CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and CCC Intelligent.

Diversification Opportunities for E2open Parent and CCC Intelligent

0.44

Correlation Coefficient

E2open Parent  CCC Intelligent

Very weak diversification

The 3 months correlation between E2open and CCC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings 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 E2open Parent 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 E2open Parent Holdings 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 E2open Parent i.e., E2open Parent and CCC Intelligent go up and down completely randomly.

Pair Corralation between E2open Parent and CCC Intelligent

Given the investment horizon of 90 days E2open Parent Holdings is expected to generate 1.62 times more return on investment than CCC Intelligent. However, E2open Parent is 1.62 times more volatile than CCC Intelligent Solutions. It trades about 0.16 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.04 per unit of risk. If you would invest  238.00  in E2open Parent Holdings on May 2, 2025 and sell it today you would earn a total of  89.00  from holding E2open Parent Holdings or generate 37.39% return on investment over 90 days.

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

E2open Parent Holdings  vs.  CCC Intelligent Solutions

E2open Parent Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E2open Parent Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, E2open Parent displayed solid returns over the last few months and may actually be approaching a breakup point.

CCC Intelligent Solutions

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CCC Intelligent Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, CCC Intelligent is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with E2open Parent and CCC Intelligent

The main advantage of trading using opposite E2open Parent and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent 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.

The idea behind E2open Parent Holdings and CCC Intelligent Solutions 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.