Correlation Between Mastech Holdings and Click Holdings
Can any of the company-specific risk be diversified away by investing in both Mastech Holdings and Click 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 Mastech Holdings and Click Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastech Holdings and Click Holdings Limited, you can compare the effects of market volatilities on Mastech Holdings and Click 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 Mastech Holdings with a short position of Click Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastech Holdings and Click Holdings.
Diversification Opportunities for Mastech Holdings and Click Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mastech and Click is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mastech Holdings and Click Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Click Holdings and Mastech Holdings 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 Mastech Holdings are associated (or correlated) with Click Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Click Holdings has no effect on the direction of Mastech Holdings i.e., Mastech Holdings and Click Holdings go up and down completely randomly.
Pair Corralation between Mastech Holdings and Click Holdings
Considering the 90-day investment horizon Mastech Holdings is expected to under-perform the Click Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Mastech Holdings is 1.33 times less risky than Click Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Click Holdings Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Click Holdings Limited on October 25, 2024 and sell it today you would earn a total of 17.00 from holding Click Holdings Limited or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastech Holdings vs. Click Holdings Limited
Performance |
| Timeline |
| Mastech Holdings |
| Click Holdings |
Mastech Holdings and Click Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastech Holdings and Click Holdings
The main advantage of trading using opposite Mastech Holdings and Click Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastech Holdings position performs unexpectedly, Click 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 Click Holdings will offset losses from the drop in Click Holdings' long position.| Mastech Holdings vs. EVI Industries | Mastech Holdings vs. LGL Group | Mastech Holdings vs. BG Staffing | Mastech Holdings vs. Issuer Direct Corp |
| Click Holdings vs. CleanGo Innovations | Click Holdings vs. Capital Clean Energy | Click Holdings vs. Dave Busters Entertainment | Click Holdings vs. Verde Clean Fuels |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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