Correlation Between Coupa Software and CCC
Can any of the company-specific risk be diversified away by investing in both Coupa Software and CCC 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 Coupa Software and CCC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupa Software and CCC, you can compare the effects of market volatilities on Coupa Software and CCC 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 Coupa Software with a short position of CCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupa Software and CCC.
Diversification Opportunities for Coupa Software and CCC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coupa and CCC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coupa Software and CCC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC and Coupa Software 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 Coupa Software are associated (or correlated) with CCC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC has no effect on the direction of Coupa Software i.e., Coupa Software and CCC go up and down completely randomly.
Pair Corralation between Coupa Software and CCC
If you would invest (100.00) in CCC on January 25, 2024 and sell it today you would earn a total of 100.00 from holding CCC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Coupa Software vs. CCC
Performance |
| Timeline |
| Coupa Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coupa Software and CCC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupa Software and CCC
The main advantage of trading using opposite Coupa Software and CCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupa Software position performs unexpectedly, CCC 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 will offset losses from the drop in CCC's long position.| Coupa Software vs. GameStop Corp | Coupa Software vs. Coupang LLC | Coupa Software vs. Kite Realty Group | Coupa Software vs. MYT Netherlands Parent |
| CCC vs. Amkor Technology | CCC vs. Qorvo Inc | CCC vs. Microchip Technology | CCC vs. Definitive Healthcare Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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