Correlation Between Science Applications and StarTek
Can any of the company-specific risk be diversified away by investing in both Science Applications 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 Science Applications and StarTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science Applications International and StarTek, you can compare the effects of market volatilities on Science Applications 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 Science Applications with a short position of StarTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and StarTek.
Diversification Opportunities for Science Applications and StarTek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Science and StarTek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and StarTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarTek and Science Applications 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 Science Applications International 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 Science Applications i.e., Science Applications and StarTek go up and down completely randomly.
Pair Corralation between Science Applications and StarTek
If you would invest (100.00) in StarTek on November 9, 2024 and sell it today you would earn a total of 100.00 from holding StarTek or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Science Applications Internati vs. StarTek
Performance |
| Timeline |
| Science Applications |
| StarTek |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Science Applications and StarTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Applications and StarTek
The main advantage of trading using opposite Science Applications and StarTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Applications 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.| Science Applications vs. CACI International | Science Applications vs. CDW Corp | Science Applications vs. Gartner | Science Applications vs. Jack Henry Associates |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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