Correlation Between CCC Intelligent and Secureworks Corp

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

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

Diversification Opportunities for CCC Intelligent and Secureworks Corp

0.72

Correlation Coefficient

CCC Intelligent  Secureworks Corp

Poor diversification

The 3 months correlation between CCC and Secureworks is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CCC Intelligent Solutions and Secureworks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secureworks Corp and CCC Intelligent 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 CCC Intelligent Solutions are associated (or correlated) with Secureworks Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secureworks Corp has no effect on the direction of CCC Intelligent i.e., CCC Intelligent and Secureworks Corp go up and down completely randomly.

Pair Corralation between CCC Intelligent and Secureworks Corp

Given the investment horizon of 90 days CCC Intelligent Solutions is expected to under-perform the Secureworks Corp. In addition to that, CCC Intelligent is 11.41 times more volatile than Secureworks Corp. It trades about -0.33 of its total potential returns per unit of risk. Secureworks Corp is currently generating about 0.26 per unit of volatility. If you would invest  845.00  in Secureworks Corp on December 29, 2024 and sell it today you would earn a total of  6.00  from holding Secureworks Corp or generate 0.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	37.7%
Values	Daily Returns

CCC Intelligent Solutions  vs.  Secureworks Corp

CCC Intelligent Solutions

Risk-Adjusted Performance

Very Weak

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 uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Secureworks Corp

Risk-Adjusted Performance

Solid

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.

Pair Trading with CCC Intelligent and Secureworks Corp

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

The idea behind CCC Intelligent Solutions and Secureworks Corp 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.