Correlation Between Take-Two Interactive and HACKETT GROUP
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and HACKETT GROUP 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 Take-Two Interactive and HACKETT GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and HACKETT GROUP, you can compare the effects of market volatilities on Take-Two Interactive and HACKETT GROUP 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 Take-Two Interactive with a short position of HACKETT GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and HACKETT GROUP.
Diversification Opportunities for Take-Two Interactive and HACKETT GROUP
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Take-Two and HACKETT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and HACKETT GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HACKETT GROUP and Take-Two Interactive 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 Take Two Interactive Software are associated (or correlated) with HACKETT GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HACKETT GROUP has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and HACKETT GROUP go up and down completely randomly.
Pair Corralation between Take-Two Interactive and HACKETT GROUP
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.87 times more return on investment than HACKETT GROUP. However, Take Two Interactive Software is 1.14 times less risky than HACKETT GROUP. It trades about 0.04 of its potential returns per unit of risk. HACKETT GROUP is currently generating about 0.03 per unit of risk. If you would invest 18,124 in Take Two Interactive Software on November 4, 2024 and sell it today you would earn a total of 208.00 from holding Take Two Interactive Software or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Take Two Interactive Software vs. HACKETT GROUP
Performance |
| Timeline |
| Take Two Interactive |
| HACKETT GROUP |
Take-Two Interactive and HACKETT GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and HACKETT GROUP
The main advantage of trading using opposite Take-Two Interactive and HACKETT GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, HACKETT GROUP 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 HACKETT GROUP will offset losses from the drop in HACKETT GROUP's long position.| Take-Two Interactive vs. Vishay Intertechnology | Take-Two Interactive vs. SCOTT TECHNOLOGY | Take-Two Interactive vs. Safety Insurance Group | Take-Two Interactive vs. SBI Insurance Group |
| HACKETT GROUP vs. TYSON FOODS A | HACKETT GROUP vs. DELTA AIR LINES | HACKETT GROUP vs. PLANT VEDA FOODS | HACKETT GROUP vs. FORWARD AIR P |
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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