Correlation Between Freshworks and CCC Intelligent

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

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

Diversification Opportunities for Freshworks and CCC Intelligent

0.15

Correlation Coefficient

Freshworks  CCC Intelligent

Average diversification

The 3 months correlation between Freshworks and CCC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Freshworks 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 Freshworks 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 Freshworks 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 Freshworks i.e., Freshworks and CCC Intelligent go up and down completely randomly.

Pair Corralation between Freshworks and CCC Intelligent

Given the investment horizon of 90 days Freshworks is expected to under-perform the CCC Intelligent. In addition to that, Freshworks is 1.63 times more volatile than CCC Intelligent Solutions. It trades about -0.12 of its total potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.0 per unit of volatility. If you would invest  940.00  in CCC Intelligent Solutions on July 1, 2025 and sell it today you would lose (9.00) from holding CCC Intelligent Solutions or give up 0.96% of portfolio value over 90 days.

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

Freshworks  vs.  CCC Intelligent Solutions

Freshworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Freshworks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in October 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CCC Intelligent Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days CCC Intelligent Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Freshworks and CCC Intelligent

The main advantage of trading using opposite Freshworks and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freshworks 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 Freshworks 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.