Correlation Between F5 Networks and SSC Technologies
Can any of the company-specific risk be diversified away by investing in both F5 Networks and SSC Technologies 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 F5 Networks and SSC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F5 Networks and SSC Technologies Holdings, you can compare the effects of market volatilities on F5 Networks and SSC Technologies 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 F5 Networks with a short position of SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of F5 Networks and SSC Technologies.
Diversification Opportunities for F5 Networks and SSC Technologies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FFV and SSC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding F5 Networks and SSC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Holdings and F5 Networks 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 F5 Networks are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Holdings has no effect on the direction of F5 Networks i.e., F5 Networks and SSC Technologies go up and down completely randomly.
Pair Corralation between F5 Networks and SSC Technologies
Assuming the 90 days horizon F5 Networks is expected to generate 0.96 times more return on investment than SSC Technologies. However, F5 Networks is 1.04 times less risky than SSC Technologies. It trades about 0.2 of its potential returns per unit of risk. SSC Technologies Holdings is currently generating about 0.15 per unit of risk. If you would invest 21,700 in F5 Networks on April 20, 2025 and sell it today you would earn a total of 4,080 from holding F5 Networks or generate 18.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
F5 Networks vs. SSC Technologies Holdings
Performance |
Timeline |
F5 Networks |
SSC Technologies Holdings |
F5 Networks and SSC Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with F5 Networks and SSC Technologies
The main advantage of trading using opposite F5 Networks and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F5 Networks position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.F5 Networks vs. Oracle | F5 Networks vs. Fair Isaac | F5 Networks vs. SSC Technologies Holdings | F5 Networks vs. Wisetech Global |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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