Correlation Between Nixxy, and Mastech Holdings
Can any of the company-specific risk be diversified away by investing in both Nixxy, and Mastech 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 Nixxy, and Mastech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nixxy, Inc and Mastech Holdings, you can compare the effects of market volatilities on Nixxy, and Mastech 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 Nixxy, with a short position of Mastech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nixxy, and Mastech Holdings.
Diversification Opportunities for Nixxy, and Mastech Holdings
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nixxy, and Mastech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nixxy, Inc and Mastech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastech Holdings and Nixxy, 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 Nixxy, Inc are associated (or correlated) with Mastech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastech Holdings has no effect on the direction of Nixxy, i.e., Nixxy, and Mastech Holdings go up and down completely randomly.
Pair Corralation between Nixxy, and Mastech Holdings
Assuming the 90 days horizon Nixxy, Inc is expected to under-perform the Mastech Holdings. In addition to that, Nixxy, is 1.75 times more volatile than Mastech Holdings. It trades about -0.01 of its total potential returns per unit of risk. Mastech Holdings is currently generating about 0.34 per unit of volatility. If you would invest 974.00 in Mastech Holdings on September 1, 2024 and sell it today you would earn a total of 566.00 from holding Mastech Holdings or generate 58.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Nixxy, Inc vs. Mastech Holdings
Performance |
| Timeline |
| Nixxy, Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Mastech Holdings |
Nixxy, and Mastech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nixxy, and Mastech Holdings
The main advantage of trading using opposite Nixxy, and Mastech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nixxy, position performs unexpectedly, Mastech 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 Mastech Holdings will offset losses from the drop in Mastech Holdings' long position.The idea behind Nixxy, Inc and Mastech Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mastech Holdings vs. EVI Industries | Mastech Holdings vs. LGL Group | Mastech Holdings vs. BG Staffing | Mastech Holdings vs. Issuer Direct Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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