Correlation Between CCC Intelligent and Flywire Corp

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

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

Diversification Opportunities for CCC Intelligent and Flywire Corp

-0.34

Correlation Coefficient

CCC Intelligent  Flywire Corp

Very good diversification

The 3 months correlation between CCC and Flywire is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CCC Intelligent Solutions and Flywire Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flywire Corp and CCC Intelligent 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 CCC Intelligent Solutions are associated (or correlated) with Flywire Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flywire Corp has no effect on the direction of CCC Intelligent i.e., CCC Intelligent and Flywire Corp go up and down completely randomly.

Pair Corralation between CCC Intelligent and Flywire Corp

Given the investment horizon of 90 days CCC Intelligent Solutions is expected to under-perform the Flywire Corp. But the stock apears to be less risky and, when comparing its historical volatility, CCC Intelligent Solutions is 1.87 times less risky than Flywire Corp. The stock trades about -0.09 of its potential returns per unit of risk. The Flywire Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,121  in Flywire Corp on July 21, 2025 and sell it today you would earn a total of  174.00  from holding Flywire Corp or generate 15.52% return on investment over 90 days.

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

CCC Intelligent Solutions  vs.  Flywire Corp

CCC Intelligent Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days CCC Intelligent Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Flywire Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Flywire Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Flywire Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CCC Intelligent and Flywire Corp

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

The idea behind CCC Intelligent Solutions and Flywire Corp 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.