Correlation Between SSC Technologies and Perficient

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Can any of the company-specific risk be diversified away by investing in both SSC Technologies and Perficient 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 Perficient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Technologies and Perficient, you can compare the effects of market volatilities on SSC Technologies and Perficient 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 Perficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Perficient.

Diversification Opportunities for SSC Technologies and Perficient

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between SSC Technologies and Perficient is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient 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 are associated (or correlated) with Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of SSC Technologies i.e., SSC Technologies and Perficient go up and down completely randomly.

Pair Corralation between SSC Technologies and Perficient

Given the investment horizon of 90 days SSC Technologies is expected to generate 0.77 times more return on investment than Perficient. However, SSC Technologies is 1.29 times less risky than Perficient. It trades about -0.22 of its potential returns per unit of risk. Perficient is currently generating about -0.24 per unit of risk. If you would invest  6,552  in SSC Technologies on April 3, 2022 and sell it today you would lose (669.00)  from holding SSC Technologies or give up 10.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

SSC Technologies  vs.  Perficient

 Performance (%) 
      Timeline 
SSC Technologies 
SSC Technologies Performance
0 of 100
Over the last 90 days SSC Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0136
Payout Ratio
0.15
Last Split Factor
2:1
Forward Annual Dividend Rate
0.8
Dividend Date
2022-06-15
Ex Dividend Date
2022-05-31
Last Split Date
2016-06-27

SSC Technologies Price Channel

Perficient 
Perficient Performance
0 of 100
Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perficient Price Channel

SSC Technologies and Perficient Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with SSC Technologies and Perficient

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

SSC Technologies

Pair trading matchups for SSC Technologies

The idea behind SSC Technologies and Perficient 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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