Correlation Between Firefly Neuroscience, and Hackett

Can any of the company-specific risk be diversified away by investing in both Firefly Neuroscience, and Hackett 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 Firefly Neuroscience, and Hackett into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Firefly Neuroscience, and The Hackett Group, you can compare the effects of market volatilities on Firefly Neuroscience, and Hackett 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 Firefly Neuroscience, with a short position of Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firefly Neuroscience, and Hackett.

Diversification Opportunities for Firefly Neuroscience, and Hackett

-0.41

Correlation Coefficient

Firefly Neuroscience,  Hackett

Very good diversification

The 3 months correlation between Firefly and Hackett is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Firefly Neuroscience, and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group and Firefly Neuroscience, 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 Firefly Neuroscience, are associated (or correlated) with Hackett. 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 Firefly Neuroscience, i.e., Firefly Neuroscience, and Hackett go up and down completely randomly.

Pair Corralation between Firefly Neuroscience, and Hackett

Given the investment horizon of 90 days Firefly Neuroscience, is expected to generate 1.79 times less return on investment than Hackett. In addition to that, Firefly Neuroscience, is 4.87 times more volatile than The Hackett Group. It trades about 0.01 of its total potential returns per unit of risk. The Hackett Group is currently generating about 0.08 per unit of volatility. If you would invest  2,231  in The Hackett Group on October 7, 2024 and sell it today you would earn a total of  838.00  from holding The Hackett Group or generate 37.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Firefly Neuroscience,  vs.  The Hackett Group

Firefly Neuroscience,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Firefly Neuroscience, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Firefly Neuroscience, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Hackett Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hackett Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Hackett unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Firefly Neuroscience, and Hackett

The main advantage of trading using opposite Firefly Neuroscience, and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firefly Neuroscience, position performs unexpectedly, Hackett 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 will offset losses from the drop in Hackett's long position.

The idea behind Firefly Neuroscience, and The Hackett Group 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.