Correlation Between ANSYS and Duck Creek

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

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

Diversification Opportunities for ANSYS and Duck Creek

-0.15

Correlation Coefficient

ANSYS  Duck Creek

Good diversification

The 3 months correlation between ANSYS and Duck is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and Duck Creek Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duck Creek Technologies and ANSYS 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 ANSYS Inc are associated (or correlated) with Duck Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duck Creek Technologies has no effect on the direction of ANSYS i.e., ANSYS and Duck Creek go up and down completely randomly.

Pair Corralation between ANSYS and Duck Creek

If you would invest  1,899  in Duck Creek Technologies on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Duck Creek Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

ANSYS Inc  vs.  Duck Creek Technologies

ANSYS Inc

Risk-Adjusted Performance

0 of 100

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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Duck Creek Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duck Creek Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Duck Creek 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 ANSYS and Duck Creek

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

The idea behind ANSYS Inc and Duck Creek Technologies 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.