Correlation Between Hackett and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Hackett and ExlService Holdings 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 ExlService Holdings 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 ExlService Holdings, you can compare the effects of market volatilities on Hackett and ExlService Holdings 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and ExlService Holdings.
Diversification Opportunities for Hackett and ExlService Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hackett and ExlService is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Hackett i.e., Hackett and ExlService Holdings go up and down completely randomly.
Pair Corralation between Hackett and ExlService Holdings
Given the investment horizon of 90 days The Hackett Group is expected to generate 1.12 times more return on investment than ExlService Holdings. However, Hackett is 1.12 times more volatile than ExlService Holdings. It trades about 0.05 of its potential returns per unit of risk. ExlService Holdings is currently generating about 0.04 per unit of risk. If you would invest 2,225 in The Hackett Group on August 28, 2024 and sell it today you would earn a total of 895.00 from holding The Hackett Group or generate 40.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hackett Group vs. ExlService Holdings
Performance |
| Timeline |
| Hackett Group |
| ExlService Holdings |
Hackett and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and ExlService Holdings
The main advantage of trading using opposite Hackett and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Hackett vs. Information Services Group | Hackett vs. Home Bancorp | Hackett vs. Heritage Financial | Hackett vs. CRA International |
| ExlService Holdings vs. Oneconnect Financial Technology | ExlService Holdings vs. Global Business Travel | ExlService Holdings vs. Alight Inc | ExlService Holdings vs. CS Disco LLC |
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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