Correlation Between DLH Holdings and Concentrix
Can any of the company-specific risk be diversified away by investing in both DLH Holdings and Concentrix 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 DLH Holdings and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DLH Holdings Corp and Concentrix, you can compare the effects of market volatilities on DLH Holdings and Concentrix 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 DLH Holdings with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of DLH Holdings and Concentrix.
Diversification Opportunities for DLH Holdings and Concentrix
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DLH and Concentrix is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding DLH Holdings Corp and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and DLH Holdings 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 DLH Holdings Corp are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of DLH Holdings i.e., DLH Holdings and Concentrix go up and down completely randomly.
Pair Corralation between DLH Holdings and Concentrix
Given the investment horizon of 90 days DLH Holdings Corp is expected to generate 0.93 times more return on investment than Concentrix. However, DLH Holdings Corp is 1.08 times less risky than Concentrix. It trades about -0.01 of its potential returns per unit of risk. Concentrix is currently generating about -0.04 per unit of risk. If you would invest 1,091 in DLH Holdings Corp on August 31, 2024 and sell it today you would lose (228.00) from holding DLH Holdings Corp or give up 20.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DLH Holdings Corp vs. Concentrix
Performance |
| Timeline |
| DLH Holdings Corp |
| Concentrix |
DLH Holdings and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DLH Holdings and Concentrix
The main advantage of trading using opposite DLH Holdings and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DLH Holdings position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| DLH Holdings vs. Network 1 Technologies | DLH Holdings vs. Wilhelmina | DLH Holdings vs. Mader Group Limited | DLH Holdings vs. First Advantage Corp |
| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |