Correlation Between Cielo SA and CCC Intelligent

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

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

Diversification Opportunities for Cielo SA and CCC Intelligent

0.0

Correlation Coefficient

Cielo SA  CCC Intelligent

Pay attention - limited upside

The 3 months correlation between Cielo and CCC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cielo SA 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 Cielo SA 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 Cielo SA 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 Cielo SA i.e., Cielo SA and CCC Intelligent go up and down completely randomly.

Pair Corralation between Cielo SA and CCC Intelligent

If you would invest  878.00  in CCC Intelligent Solutions on December 4, 2024 and sell it today you would earn a total of  88.00  from holding CCC Intelligent Solutions or generate 10.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cielo SA  vs.  CCC Intelligent Solutions

Cielo SA

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Cielo SA and CCC Intelligent

The main advantage of trading using opposite Cielo SA and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cielo SA 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 Cielo SA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.