Correlation Between HACKETT GROUP and INTER CARS
Can any of the company-specific risk be diversified away by investing in both HACKETT GROUP and INTER CARS 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 HACKETT GROUP and INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HACKETT GROUP and INTER CARS SA, you can compare the effects of market volatilities on HACKETT GROUP and INTER CARS 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 HACKETT GROUP with a short position of INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HACKETT GROUP and INTER CARS.
Diversification Opportunities for HACKETT GROUP and INTER CARS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HACKETT and INTER is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HACKETT GROUP and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA and HACKETT GROUP 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 HACKETT GROUP are associated (or correlated) with INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of HACKETT GROUP i.e., HACKETT GROUP and INTER CARS go up and down completely randomly.
Pair Corralation between HACKETT GROUP and INTER CARS
Assuming the 90 days trading horizon HACKETT GROUP is expected to generate 1.06 times more return on investment than INTER CARS. However, HACKETT GROUP is 1.06 times more volatile than INTER CARS SA. It trades about 0.09 of its potential returns per unit of risk. INTER CARS SA is currently generating about -0.02 per unit of risk. If you would invest 1,979 in HACKETT GROUP on September 14, 2024 and sell it today you would earn a total of 1,081 from holding HACKETT GROUP or generate 54.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HACKETT GROUP vs. INTER CARS SA
Performance |
| Timeline |
| HACKETT GROUP |
| INTER CARS SA |
HACKETT GROUP and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HACKETT GROUP and INTER CARS
The main advantage of trading using opposite HACKETT GROUP and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HACKETT GROUP position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| HACKETT GROUP vs. INTER CARS SA | HACKETT GROUP vs. Commercial Vehicle Group | HACKETT GROUP vs. The Trade Desk | HACKETT GROUP vs. TRADEGATE |
| INTER CARS vs. Bridgestone | INTER CARS vs. Superior Plus Corp | INTER CARS vs. SIVERS SEMICONDUCTORS AB | INTER CARS vs. Norsk Hydro ASA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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