Correlation Between SSC Technologies and Duolingo

Can any of the company-specific risk be diversified away by investing in both SSC Technologies and Duolingo 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 Duolingo 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 Duolingo, you can compare the effects of market volatilities on SSC Technologies and Duolingo 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 Duolingo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Duolingo.

Diversification Opportunities for SSC Technologies and Duolingo

0.21

Correlation Coefficient

SSC Technologies  Duolingo

Modest diversification

The 3 months correlation between SSC and Duolingo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings and Duolingo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duolingo 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 Duolingo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duolingo has no effect on the direction of SSC Technologies i.e., SSC Technologies and Duolingo go up and down completely randomly.

Pair Corralation between SSC Technologies and Duolingo

Given the investment horizon of 90 days SSC Technologies Holdings is expected to generate 0.29 times more return on investment than Duolingo. However, SSC Technologies Holdings is 3.5 times less risky than Duolingo. It trades about -0.08 of its potential returns per unit of risk. Duolingo is currently generating about -0.2 per unit of risk. If you would invest  8,763  in SSC Technologies Holdings on August 20, 2025 and sell it today you would lose (629.00) from holding SSC Technologies Holdings or give up 7.18% of portfolio value over 90 days.

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

SSC Technologies Holdings  vs.  Duolingo

SSC Technologies Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days SSC Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Duolingo

Risk-Adjusted Performance

Weakest

Over the last 90 days Duolingo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SSC Technologies and Duolingo

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

The idea behind SSC Technologies Holdings and Duolingo 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.