Correlation Between Critical Solutions and Booz Allen

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

By analyzing existing cross correlation between Critical Solutions and Booz Allen Hamilton, you can compare the effects of market volatilities on Critical Solutions and Booz Allen 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 Critical Solutions with a short position of Booz Allen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Solutions and Booz Allen.

Diversification Opportunities for Critical Solutions and Booz Allen

0.0

Correlation Coefficient

Critical Solutions  Booz Allen

Pay attention - limited upside

The 3 months correlation between Critical and Booz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Critical Solutions and Booz Allen Hamilton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booz Allen Hamilton and Critical Solutions 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 Critical Solutions are associated (or correlated) with Booz Allen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booz Allen Hamilton has no effect on the direction of Critical Solutions i.e., Critical Solutions and Booz Allen go up and down completely randomly.

Pair Corralation between Critical Solutions and Booz Allen

If you would invest (100.00) in Critical Solutions on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Critical Solutions 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

Critical Solutions  vs.  Booz Allen Hamilton

Critical Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Critical Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Critical Solutions is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Booz Allen Hamilton

Risk-Adjusted Performance

Very Weak

Over the last 90 days Booz Allen Hamilton has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Critical Solutions and Booz Allen

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

The idea behind Critical Solutions and Booz Allen Hamilton 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.