Correlation Between Apple and HACKETT GROUP
Can any of the company-specific risk be diversified away by investing in both Apple and HACKETT GROUP 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 Apple and HACKETT GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and HACKETT GROUP, you can compare the effects of market volatilities on Apple and HACKETT GROUP 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 Apple with a short position of HACKETT GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HACKETT GROUP.
Diversification Opportunities for Apple and HACKETT GROUP
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and HACKETT is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HACKETT GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HACKETT GROUP and Apple 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 Apple Inc are associated (or correlated) with HACKETT GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HACKETT GROUP has no effect on the direction of Apple i.e., Apple and HACKETT GROUP go up and down completely randomly.
Pair Corralation between Apple and HACKETT GROUP
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.4 times more return on investment than HACKETT GROUP. However, Apple Inc is 2.51 times less risky than HACKETT GROUP. It trades about 0.59 of its potential returns per unit of risk. HACKETT GROUP is currently generating about 0.12 per unit of risk. If you would invest 20,985 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,515 from holding Apple Inc or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. HACKETT GROUP
Performance |
| Timeline |
| Apple Inc |
| HACKETT GROUP |
Apple and HACKETT GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and HACKETT GROUP
The main advantage of trading using opposite Apple and HACKETT GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, HACKETT GROUP 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 HACKETT GROUP will offset losses from the drop in HACKETT GROUP's long position.| Apple vs. Aedas Homes SA | Apple vs. INFORMATION SVC GRP | Apple vs. Neinor Homes SA | Apple vs. Public Storage |
| HACKETT GROUP vs. CVW CLEANTECH INC | HACKETT GROUP vs. CHINA TELECOM H | HACKETT GROUP vs. Charter Communications | HACKETT GROUP vs. Laureate Education |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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