Correlation Between Perficient and Gartner
Can any of the company-specific risk be diversified away by investing in both Perficient and Gartner 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 Perficient and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perficient and Gartner, you can compare the effects of market volatilities on Perficient and Gartner 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 Perficient with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perficient and Gartner.
Diversification Opportunities for Perficient and Gartner
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perficient and Gartner is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Perficient and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and Perficient 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 Perficient are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Perficient i.e., Perficient and Gartner go up and down completely randomly.
Pair Corralation between Perficient and Gartner
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 |
Perficient vs. Gartner
Performance |
| Timeline |
| Perficient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Gartner |
Perficient and Gartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perficient and Gartner
The main advantage of trading using opposite Perficient and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perficient position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.| Perficient vs. WNS Holdings | Perficient vs. Genpact Limited | Perficient vs. ASGN Inc | Perficient vs. CACI International |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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