Correlation Between Gartner and Hackett
Can any of the company-specific risk be diversified away by investing in both Gartner and Hackett 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 Hackett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and The Hackett Group, you can compare the effects of market volatilities on Gartner and Hackett 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 Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and Hackett.
Diversification Opportunities for Gartner and Hackett
Very weak diversification
The 3 months correlation between Gartner and Hackett is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group 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 Hackett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hackett Group has no effect on the direction of Gartner i.e., Gartner and Hackett go up and down completely randomly.
Pair Corralation between Gartner and Hackett
Allowing for the 90-day total investment horizon Gartner is expected to generate 0.81 times more return on investment than Hackett. However, Gartner is 1.23 times less risky than Hackett. It trades about 0.06 of its potential returns per unit of risk. The Hackett Group is currently generating about 0.04 per unit of risk. If you would invest 35,046 in Gartner on August 24, 2024 and sell it today you would earn a total of 16,878 from holding Gartner or generate 48.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. The Hackett Group
Performance |
| Timeline |
| Gartner |
| Hackett Group |
Gartner and Hackett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and Hackett
The main advantage of trading using opposite Gartner and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, Hackett 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 Hackett will offset losses from the drop in Hackett's long position.| Gartner vs. Concentrix | Gartner vs. Accenture plc | Gartner vs. International Business Machines | Gartner vs. Cognizant Technology Solutions |
| Hackett vs. Concentrix | Hackett vs. Accenture plc | Hackett vs. International Business Machines | Hackett vs. Cognizant Technology Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |