Correlation Between Gartner and DLH Holdings
Can any of the company-specific risk be diversified away by investing in both Gartner and DLH 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 Gartner and DLH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and DLH Holdings Corp, you can compare the effects of market volatilities on Gartner and DLH 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 Gartner with a short position of DLH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and DLH Holdings.
Diversification Opportunities for Gartner and DLH Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gartner and DLH is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and DLH Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DLH Holdings Corp and Gartner 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 Gartner are associated (or correlated) with DLH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DLH Holdings Corp has no effect on the direction of Gartner i.e., Gartner and DLH Holdings go up and down completely randomly.
Pair Corralation between Gartner and DLH Holdings
Allowing for the 90-day total investment horizon Gartner is expected to generate 0.56 times more return on investment than DLH Holdings. However, Gartner is 1.79 times less risky than DLH Holdings. It trades about 0.06 of its potential returns per unit of risk. DLH Holdings Corp is currently generating about -0.06 per unit of risk. If you would invest 43,484 in Gartner on August 26, 2024 and sell it today you would earn a total of 8,494 from holding Gartner or generate 19.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. DLH Holdings Corp
Performance |
| Timeline |
| Gartner |
| DLH Holdings Corp |
Gartner and DLH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and DLH Holdings
The main advantage of trading using opposite Gartner and DLH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, DLH 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 DLH Holdings will offset losses from the drop in DLH Holdings' long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
| DLH Holdings vs. ExlService Holdings | DLH Holdings vs. WNS Holdings | DLH Holdings vs. Gartner | DLH Holdings vs. The Hackett 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |