Correlation Between Hackett and Digimarc
Can any of the company-specific risk be diversified away by investing in both Hackett and Digimarc 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 Digimarc 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 Digimarc, you can compare the effects of market volatilities on Hackett and Digimarc 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 Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and Digimarc.
Diversification Opportunities for Hackett and Digimarc
Weak diversification
The 3 months correlation between Hackett and Digimarc is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc 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 Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Hackett i.e., Hackett and Digimarc go up and down completely randomly.
Pair Corralation between Hackett and Digimarc
Given the investment horizon of 90 days The Hackett Group is expected to under-perform the Digimarc. But the stock apears to be less risky and, when comparing its historical volatility, The Hackett Group is 4.22 times less risky than Digimarc. The stock trades about -0.1 of its potential returns per unit of risk. The Digimarc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,625 in Digimarc on October 20, 2024 and sell it today you would earn a total of 503.00 from holding Digimarc or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hackett Group vs. Digimarc
Performance |
| Timeline |
| Hackett Group |
| Digimarc |
Hackett and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and Digimarc
The main advantage of trading using opposite Hackett and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| Hackett vs. Information Services Group | Hackett vs. Home Bancorp | Hackett vs. Heritage Financial | Hackett vs. CRA 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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