Correlation Between DXC Technology and Perficient
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Perficient 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 DXC Technology and Perficient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Perficient, you can compare the effects of market volatilities on DXC Technology and Perficient 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 DXC Technology with a short position of Perficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Perficient.
Diversification Opportunities for DXC Technology and Perficient
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DXC and Perficient is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient and DXC Technology 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 DXC Technology Co are associated (or correlated) with Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of DXC Technology i.e., DXC Technology and Perficient go up and down completely randomly.
Pair Corralation between DXC Technology and Perficient
Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the Perficient. But the stock apears to be less risky and, when comparing its historical volatility, DXC Technology Co is 1.28 times less risky than Perficient. The stock trades about 0.0 of its potential returns per unit of risk. The Perficient is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,223 in Perficient on August 25, 2024 and sell it today you would earn a total of 373.00 from holding Perficient or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.35% |
| Values | Daily Returns |
DXC Technology Co vs. Perficient
Performance |
| Timeline |
| DXC Technology |
| Perficient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
DXC Technology and Perficient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Perficient
The main advantage of trading using opposite DXC Technology and Perficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Perficient 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 Perficient will offset losses from the drop in Perficient's long position.| DXC Technology vs. CACI International | DXC Technology vs. CDW Corp | DXC Technology vs. Jack Henry Associates | DXC Technology vs. Broadridge Financial Solutions |
| Perficient vs. WNS Holdings | Perficient vs. Genpact Limited | Perficient vs. ASGN Inc | Perficient vs. CACI International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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