Correlation Between PDF Solutions and Clear Secure

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

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

Diversification Opportunities for PDF Solutions and Clear Secure

-0.45

Correlation Coefficient

PDF Solutions  Clear Secure

Very good diversification

The 3 months correlation between PDF and Clear is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PDF Solutions and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and PDF Solutions 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 PDF Solutions are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of PDF Solutions i.e., PDF Solutions and Clear Secure go up and down completely randomly.

Pair Corralation between PDF Solutions and Clear Secure

Given the investment horizon of 90 days PDF Solutions is expected to under-perform the Clear Secure. But the stock apears to be less risky and, when comparing its historical volatility, PDF Solutions is 1.26 times less risky than Clear Secure. The stock trades about -0.03 of its potential returns per unit of risk. The Clear Secure is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,117  in Clear Secure on September 12, 2024 and sell it today you would earn a total of  662.00  from holding Clear Secure or generate 31.27% return on investment over 90 days.

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

PDF Solutions  vs.  Clear Secure

PDF Solutions

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PDF Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, PDF Solutions may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clear Secure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Clear Secure 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 PDF Solutions and Clear Secure

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

The idea behind PDF Solutions and Clear Secure 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 the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.