Correlation Between HACKETT GROUP and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both HACKETT GROUP and Cogent Communications 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 Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HACKETT GROUP and Cogent Communications Holdings, you can compare the effects of market volatilities on HACKETT GROUP and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of HACKETT GROUP and Cogent Communications.
Diversification Opportunities for HACKETT GROUP and Cogent Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HACKETT and Cogent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HACKETT GROUP and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of HACKETT GROUP i.e., HACKETT GROUP and Cogent Communications go up and down completely randomly.
Pair Corralation between HACKETT GROUP and Cogent Communications
If you would invest 7,200 in Cogent Communications Holdings on October 9, 2024 and sell it today you would earn a total of 150.00 from holding Cogent Communications Holdings or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
HACKETT GROUP vs. Cogent Communications Holdings
Performance |
| Timeline |
| HACKETT GROUP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Cogent Communications |
HACKETT GROUP and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HACKETT GROUP and Cogent Communications
The main advantage of trading using opposite HACKETT GROUP and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HACKETT GROUP position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| HACKETT GROUP vs. Take Two Interactive Software | HACKETT GROUP vs. FUYO GENERAL LEASE | HACKETT GROUP vs. UPDATE SOFTWARE | HACKETT GROUP vs. Japan Tobacco |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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