Correlation Between SSC Technologies and Atlassian Plc

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

By analyzing existing cross correlation between SSC Technologies Holdings, and Atlassian Plc, you can compare the effects of market volatilities on SSC Technologies and Atlassian 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 SSC Technologies with a short position of Atlassian Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Atlassian Plc.

Diversification Opportunities for SSC Technologies and Atlassian Plc

-0.68

Correlation Coefficient

SSC Technologies  Atlassian Plc

Excellent diversification

The 3 months correlation between SSC and Atlassian is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings, and Atlassian Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlassian Plc 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 Holdings, are associated (or correlated) with Atlassian Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlassian Plc has no effect on the direction of SSC Technologies i.e., SSC Technologies and Atlassian Plc go up and down completely randomly.

Pair Corralation between SSC Technologies and Atlassian Plc

Assuming the 90 days trading horizon SSC Technologies Holdings, is expected to generate 0.01 times more return on investment than Atlassian Plc. However, SSC Technologies Holdings, is 108.28 times less risky than Atlassian Plc. It trades about 0.13 of its potential returns per unit of risk. Atlassian Plc is currently generating about -0.05 per unit of risk. If you would invest  8,164  in SSC Technologies Holdings, on April 23, 2025 and sell it today you would earn a total of  16.00  from holding SSC Technologies Holdings, or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

SSC Technologies Holdings,  vs.  Atlassian Plc

SSC Technologies Hol

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SSC Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Atlassian Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlassian Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with SSC Technologies and Atlassian Plc

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

The idea behind SSC Technologies Holdings, and Atlassian 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.