Correlation Between Science Applications and CLARIVATE PLC

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

By analyzing existing cross correlation between Science Applications International and CLARIVATE PLC, you can compare the effects of market volatilities on Science Applications and CLARIVATE PLC 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 Science Applications with a short position of CLARIVATE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and CLARIVATE PLC.

Diversification Opportunities for Science Applications and CLARIVATE PLC

-0.14

Correlation Coefficient

Science Applications  CLARIVATE PLC

Good diversification

The 3 months correlation between Science and CLARIVATE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and CLARIVATE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLARIVATE PLC and Science Applications 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 Science Applications International are associated (or correlated) with CLARIVATE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLARIVATE PLC has no effect on the direction of Science Applications i.e., Science Applications and CLARIVATE PLC go up and down completely randomly.

Pair Corralation between Science Applications and CLARIVATE PLC

Given the investment horizon of 90 days Science Applications International is expected to under-perform the CLARIVATE PLC. But the stock apears to be less risky and, when comparing its historical volatility, Science Applications International is 1.01 times less risky than CLARIVATE PLC. The stock trades about -0.02 of its potential returns per unit of risk. The CLARIVATE PLC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  429.00  in CLARIVATE PLC on May 1, 2025 and sell it today you would lose (6.00) from holding CLARIVATE PLC or give up 1.4% of portfolio value over 90 days.

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

Science Applications Internati  vs.  CLARIVATE PLC

Science Applications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Science Applications International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Science Applications is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 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.

Pair Trading with Science Applications and CLARIVATE PLC

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

The idea behind Science Applications International and CLARIVATE PLC 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.