Correlation Between Hackett and Crypto
Can any of the company-specific risk be diversified away by investing in both Hackett and Crypto 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 Crypto 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 Crypto Co, you can compare the effects of market volatilities on Hackett and Crypto 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 Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and Crypto.
Diversification Opportunities for Hackett and Crypto
Modest diversification
The 3 months correlation between Hackett and Crypto is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and Crypto Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crypto 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 Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crypto has no effect on the direction of Hackett i.e., Hackett and Crypto go up and down completely randomly.
Pair Corralation between Hackett and Crypto
Given the investment horizon of 90 days Hackett is expected to generate 14.73 times less return on investment than Crypto. But when comparing it to its historical volatility, The Hackett Group is 13.05 times less risky than Crypto. It trades about 0.05 of its potential returns per unit of risk. Crypto Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Crypto Co on October 25, 2024 and sell it today you would lose (22.94) from holding Crypto Co or give up 99.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hackett Group vs. Crypto Co
Performance |
| Timeline |
| Hackett Group |
| Crypto |
Hackett and Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and Crypto
The main advantage of trading using opposite Hackett and Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, Crypto 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 Crypto will offset losses from the drop in Crypto's long position.| Hackett vs. Information Services Group | Hackett vs. Home Bancorp | Hackett vs. Heritage Financial | Hackett vs. CRA International |
| Crypto vs. Direct Communication Solutions | Crypto vs. Datametrex AI Limited | Crypto vs. CSE Global Limited | Crypto vs. Appen Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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