Correlation Between SSC Technologies and ANSYS

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

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

Diversification Opportunities for SSC Technologies and ANSYS

-0.26

Correlation Coefficient

SSC Technologies  ANSYS

Very good diversification

The 3 months correlation between SSC and ANSYS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and SSC Technologies 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 SSC Technologies Holdings are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of SSC Technologies i.e., SSC Technologies and ANSYS go up and down completely randomly.

Pair Corralation between SSC Technologies and ANSYS

Given the investment horizon of 90 days SSC Technologies Holdings is expected to generate 1.23 times more return on investment than ANSYS. However, SSC Technologies is 1.23 times more volatile than ANSYS Inc. It trades about 0.13 of its potential returns per unit of risk. ANSYS Inc is currently generating about -0.07 per unit of risk. If you would invest  7,590  in SSC Technologies Holdings on December 27, 2024 and sell it today you would earn a total of  793.00  from holding SSC Technologies Holdings or generate 10.45% return on investment over 90 days.

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

SSC Technologies Holdings  vs.  ANSYS Inc

SSC Technologies Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, SSC Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ANSYS Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SSC Technologies and ANSYS

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

The idea behind SSC Technologies Holdings and ANSYS Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..