Correlation Between Gartner and Perficient
Can any of the company-specific risk be diversified away by investing in both Gartner and Perficient 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 Perficient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and Perficient, you can compare the effects of market volatilities on Gartner and Perficient 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 Perficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and Perficient.
Diversification Opportunities for Gartner and Perficient
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gartner and Perficient is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient 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 Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of Gartner i.e., Gartner and Perficient go up and down completely randomly.
Pair Corralation between Gartner and Perficient
If you would invest 51,467 in Gartner on August 28, 2024 and sell it today you would earn a total of 430.00 from holding Gartner or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gartner vs. Perficient
Performance |
| Timeline |
| Gartner |
| Perficient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Gartner and Perficient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and Perficient
The main advantage of trading using opposite Gartner and Perficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, Perficient 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 Perficient will offset losses from the drop in Perficient's long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
| Perficient vs. WNS Holdings | Perficient vs. Genpact Limited | Perficient vs. ASGN Inc | Perficient vs. CACI 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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