Correlation Between Latch and SSC Technologies

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

By analyzing existing cross correlation between Latch Inc and SSC Technologies Holdings, you can compare the effects of market volatilities on Latch and SSC Technologies 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 Latch with a short position of SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Latch and SSC Technologies.

Diversification Opportunities for Latch and SSC Technologies

0.0

Correlation Coefficient

Latch  SSC Technologies

Pay attention - limited upside

The 3 months correlation between Latch and SSC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Latch Inc and SSC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Holdings and Latch 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 Latch Inc are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Holdings has no effect on the direction of Latch i.e., Latch and SSC Technologies go up and down completely randomly.

Pair Corralation between Latch and SSC Technologies

If you would invest  5,227  in SSC Technologies Holdings on December 4, 2024 and sell it today you would earn a total of  3,595  from holding SSC Technologies Holdings or generate 68.78% return on investment over 90 days.

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

Latch Inc  vs.  SSC Technologies Holdings

Latch Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Latch Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Latch is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

SSC Technologies Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, SSC Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Latch and SSC Technologies

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

The idea behind Latch Inc and SSC Technologies Holdings 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.