Correlation Between Gartner and StarTek
Can any of the company-specific risk be diversified away by investing in both Gartner and StarTek 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 StarTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and StarTek, you can compare the effects of market volatilities on Gartner and StarTek 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 StarTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and StarTek.
Diversification Opportunities for Gartner and StarTek
Excellent diversification
The 3 months correlation between Gartner and StarTek is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and StarTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarTek 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 StarTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarTek has no effect on the direction of Gartner i.e., Gartner and StarTek go up and down completely randomly.
Pair Corralation between Gartner and StarTek
Allowing for the 90-day total investment horizon Gartner is expected to generate 0.46 times more return on investment than StarTek. However, Gartner is 2.16 times less risky than StarTek. It trades about 0.06 of its potential returns per unit of risk. StarTek is currently generating about -0.02 per unit of risk. If you would invest 34,255 in Gartner on August 28, 2024 and sell it today you would earn a total of 17,642 from holding Gartner or generate 51.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.52% |
| Values | Daily Returns |
Gartner vs. StarTek
Performance |
| Timeline |
| Gartner |
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gartner and StarTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and StarTek
The main advantage of trading using opposite Gartner and StarTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, StarTek 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 StarTek will offset losses from the drop in StarTek's long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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