Correlation Between Concentrix and Hackett
Can any of the company-specific risk be diversified away by investing in both Concentrix and Hackett 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 Concentrix and Hackett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and The Hackett Group, you can compare the effects of market volatilities on Concentrix and Hackett 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 Concentrix with a short position of Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and Hackett.
Diversification Opportunities for Concentrix and Hackett
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concentrix and Hackett is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group and Concentrix 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 Concentrix are associated (or correlated) with Hackett. 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 Concentrix i.e., Concentrix and Hackett go up and down completely randomly.
Pair Corralation between Concentrix and Hackett
Given the investment horizon of 90 days Concentrix is expected to under-perform the Hackett. In addition to that, Concentrix is 1.36 times more volatile than The Hackett Group. It trades about -0.06 of its total potential returns per unit of risk. The Hackett Group is currently generating about 0.04 per unit of volatility. If you would invest 2,231 in The Hackett Group on August 24, 2024 and sell it today you would earn a total of 865.00 from holding The Hackett Group or generate 38.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concentrix vs. The Hackett Group
Performance |
| Timeline |
| Concentrix |
| Hackett Group |
Concentrix and Hackett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentrix and Hackett
The main advantage of trading using opposite Concentrix and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, Hackett 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 will offset losses from the drop in Hackett's long position.| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
| Hackett vs. Concentrix | Hackett vs. Accenture plc | Hackett vs. International Business Machines | Hackett vs. Cognizant Technology Solutions |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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