Correlation Between Hackett and Computer Task
Can any of the company-specific risk be diversified away by investing in both Hackett and Computer Task 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 Computer Task 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 Computer Task Group, you can compare the effects of market volatilities on Hackett and Computer Task 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 Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and Computer Task.
Diversification Opportunities for Hackett and Computer Task
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hackett and Computer is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task 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 Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of Hackett i.e., Hackett and Computer Task go up and down completely randomly.
Pair Corralation between Hackett and Computer Task
Given the investment horizon of 90 days The Hackett Group is expected to generate 0.81 times more return on investment than Computer Task. However, The Hackett Group is 1.23 times less risky than Computer Task. It trades about 0.04 of its potential returns per unit of risk. Computer Task Group is currently generating about 0.03 per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
The Hackett Group vs. Computer Task Group
Performance |
| Timeline |
| Hackett Group |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hackett and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and Computer Task
The main advantage of trading using opposite Hackett and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.| Hackett vs. Concentrix | Hackett vs. Accenture plc | Hackett vs. International Business Machines | Hackett vs. Cognizant Technology Solutions |
| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Nayax | Computer Task vs. Formula Systems 1985 |
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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