Correlation Between Hackett and Alithya
Can any of the company-specific risk be diversified away by investing in both Hackett and Alithya 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 and Alithya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hackett Group and Alithya Group, you can compare the effects of market volatilities on Hackett and Alithya 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 with a short position of Alithya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and Alithya.
Diversification Opportunities for Hackett and Alithya
Very good diversification
The 3 months correlation between Hackett and Alithya is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and Alithya Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group and Hackett 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 The Hackett Group are associated (or correlated) with Alithya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group has no effect on the direction of Hackett i.e., Hackett and Alithya go up and down completely randomly.
Pair Corralation between Hackett and Alithya
If you would invest 3,072 in The Hackett Group on November 1, 2024 and sell it today you would earn a total of 24.00 from holding The Hackett Group or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
The Hackett Group vs. Alithya Group
Performance |
| Timeline |
| Hackett Group |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hackett and Alithya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and Alithya
The main advantage of trading using opposite Hackett and Alithya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, Alithya 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 Alithya will offset losses from the drop in Alithya's long position.| Hackett vs. Information Services Group | Hackett vs. Home Bancorp | Hackett vs. Heritage Financial | Hackett vs. CRA International |
| Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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