Correlation Between Insperity and Mastech Holdings
Can any of the company-specific risk be diversified away by investing in both Insperity 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 Insperity and Mastech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insperity and Mastech Holdings, you can compare the effects of market volatilities on Insperity 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 Insperity with a short position of Mastech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insperity and Mastech Holdings.
Diversification Opportunities for Insperity and Mastech Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Insperity and Mastech is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Insperity and Mastech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastech Holdings and Insperity 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 Insperity 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 Insperity i.e., Insperity and Mastech Holdings go up and down completely randomly.
Pair Corralation between Insperity and Mastech Holdings
Considering the 90-day investment horizon Insperity is expected to under-perform the Mastech Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Insperity is 1.95 times less risky than Mastech Holdings. The stock trades about -0.06 of its potential returns per unit of risk. The Mastech Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Mastech Holdings on September 1, 2024 and sell it today you would earn a total of 740.00 from holding Mastech Holdings or generate 92.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insperity vs. Mastech Holdings
Performance |
| Timeline |
| Insperity |
| Mastech Holdings |
Insperity and Mastech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insperity and Mastech Holdings
The main advantage of trading using opposite Insperity and Mastech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insperity 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.| Insperity vs. Korn Ferry | Insperity vs. Barrett Business Services | Insperity vs. TrueBlue | Insperity vs. Heidrick Struggles International |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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