Correlation Between CBIZ and CLARIVATE PLC

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

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

Diversification Opportunities for CBIZ and CLARIVATE PLC

-0.16

Correlation Coefficient

CBIZ  CLARIVATE PLC

Good diversification

The 3 months correlation between CBIZ and CLARIVATE is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CBIZ Inc and CLARIVATE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLARIVATE PLC and CBIZ 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 CBIZ Inc are associated (or correlated) with CLARIVATE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLARIVATE PLC has no effect on the direction of CBIZ i.e., CBIZ and CLARIVATE PLC go up and down completely randomly.

Pair Corralation between CBIZ and CLARIVATE PLC

Considering the 90-day investment horizon CBIZ Inc is expected to generate 0.33 times more return on investment than CLARIVATE PLC. However, CBIZ Inc is 3.05 times less risky than CLARIVATE PLC. It trades about 0.1 of its potential returns per unit of risk. CLARIVATE PLC is currently generating about -0.27 per unit of risk. If you would invest  7,461  in CBIZ Inc on March 7, 2024 and sell it today you would earn a total of  170.00  from holding CBIZ Inc or generate 2.28% return on investment over 90 days.

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

CBIZ Inc  vs.  CLARIVATE PLC

CBIZ Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CBIZ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, CBIZ is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

CLARIVATE PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CLARIVATE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CBIZ and CLARIVATE PLC

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

The idea behind CBIZ Inc and CLARIVATE PLC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.