Correlation Between Concentrix and Hackett

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

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

Diversification Opportunities for Concentrix and Hackett

0.0

Correlation Coefficient

Concentrix  Hackett

Pay attention - limited upside

The 3 months correlation between Concentrix and Hackett is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group and Concentrix 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 Concentrix 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 Concentrix i.e., Concentrix and Hackett go up and down completely randomly.

Pair Corralation between Concentrix and Hackett

Given the investment horizon of 90 days Concentrix is expected to under-perform the Hackett. In addition to that, Concentrix is 1.56 times more volatile than The Hackett Group. It trades about -0.06 of its total potential returns per unit of risk. The Hackett Group is currently generating about 0.07 per unit of volatility. If you would invest  1,719  in The Hackett Group on December 5, 2024 and sell it today you would earn a total of  1,232  from holding The Hackett Group or generate 71.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Concentrix  vs.  The Hackett Group

Concentrix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Concentrix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Concentrix is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Hackett Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Hackett Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Concentrix and Hackett

The main advantage of trading using opposite Concentrix and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix 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 Concentrix 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.