Correlation Between MicroAlgo and CCC Intelligent

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

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

Diversification Opportunities for MicroAlgo and CCC Intelligent

0.12

Correlation Coefficient

MicroAlgo  CCC Intelligent

Average diversification

The 3 months correlation between MicroAlgo and CCC is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo 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 MicroAlgo 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 MicroAlgo 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 MicroAlgo i.e., MicroAlgo and CCC Intelligent go up and down completely randomly.

Pair Corralation between MicroAlgo and CCC Intelligent

Given the investment horizon of 90 days MicroAlgo is expected to under-perform the CCC Intelligent. In addition to that, MicroAlgo is 7.15 times more volatile than CCC Intelligent Solutions. It trades about -0.07 of its total potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.2 per unit of volatility. If you would invest  933.00  in CCC Intelligent Solutions on April 25, 2025 and sell it today you would earn a total of  55.00  from holding CCC Intelligent Solutions or generate 5.89% return on investment over 90 days.

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

MicroAlgo  vs.  CCC Intelligent Solutions

MicroAlgo

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroAlgo 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 very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CCC Intelligent Solutions

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CCC Intelligent Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, CCC Intelligent may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MicroAlgo and CCC Intelligent

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

Check out your portfolio center.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.