Correlation Between Secureworks Corp and Verint Systems

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

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

Diversification Opportunities for Secureworks Corp and Verint Systems

-0.13

Correlation Coefficient

Secureworks Corp  Verint Systems

Good diversification

The 3 months correlation between Secureworks and Verint is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Secureworks Corp and Verint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems and Secureworks Corp 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 Secureworks Corp are associated (or correlated) with Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of Secureworks Corp i.e., Secureworks Corp and Verint Systems go up and down completely randomly.

Pair Corralation between Secureworks Corp and Verint Systems

If you would invest  851.00  in Secureworks Corp on July 30, 2025 and sell it today you would earn a total of  0.00  from holding Secureworks Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Secureworks Corp  vs.  Verint Systems

Secureworks Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Secureworks Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Secureworks Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Verint Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Verint Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Verint Systems is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Secureworks Corp and Verint Systems

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

The idea behind Secureworks Corp and Verint Systems 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.