Correlation Between SSC Technologies and MondayCom

Can any of the company-specific risk be diversified away by investing in both SSC Technologies and MondayCom 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 MondayCom 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 MondayCom, you can compare the effects of market volatilities on SSC Technologies and MondayCom 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 MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and MondayCom.

Diversification Opportunities for SSC Technologies and MondayCom

-0.09

Correlation Coefficient

SSC Technologies  MondayCom

Good diversification

The 3 months correlation between SSC and MondayCom is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of SSC Technologies i.e., SSC Technologies and MondayCom go up and down completely randomly.

Pair Corralation between SSC Technologies and MondayCom

Given the investment horizon of 90 days SSC Technologies is expected to generate 3.84 times less return on investment than MondayCom. But when comparing it to its historical volatility, SSC Technologies Holdings is 2.51 times less risky than MondayCom. It trades about 0.03 of its potential returns per unit of risk. MondayCom is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  26,313  in MondayCom on September 14, 2024 and sell it today you would earn a total of  1,891  from holding MondayCom or generate 7.19% 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.  MondayCom

SSC Technologies Holdings

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SSC Technologies is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

MondayCom

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MondayCom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, MondayCom may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with SSC Technologies and MondayCom

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

The idea behind SSC Technologies Holdings and MondayCom 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 Global Correlations module to find global opportunities by holding instruments from different markets.