Correlation Between Gartner and Jack Henry
Can any of the company-specific risk be diversified away by investing in both Gartner and Jack Henry 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 Jack Henry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and Jack Henry Associates, you can compare the effects of market volatilities on Gartner and Jack Henry 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 Jack Henry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and Jack Henry.
Diversification Opportunities for Gartner and Jack Henry
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gartner and Jack is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and Jack Henry Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Henry Associates 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 Jack Henry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Henry Associates has no effect on the direction of Gartner i.e., Gartner and Jack Henry go up and down completely randomly.
Pair Corralation between Gartner and Jack Henry
Allowing for the 90-day total investment horizon Gartner is expected to generate 1.83 times more return on investment than Jack Henry. However, Gartner is 1.83 times more volatile than Jack Henry Associates. It trades about 0.04 of its potential returns per unit of risk. Jack Henry Associates is currently generating about -0.34 per unit of risk. If you would invest 51,467 in Gartner on August 27, 2024 and sell it today you would earn a total of 511.00 from holding Gartner or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. Jack Henry Associates
Performance |
| Timeline |
| Gartner |
| Jack Henry Associates |
Gartner and Jack Henry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and Jack Henry
The main advantage of trading using opposite Gartner and Jack Henry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, Jack Henry 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 Jack Henry will offset losses from the drop in Jack Henry's long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
| Jack Henry vs. Cognizant Technology Solutions | Jack Henry vs. CDW Corp | Jack Henry vs. Gartner | Jack Henry vs. Broadridge Financial 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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