Correlation Between HireRight Holdings and Mastech Holdings

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

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

Diversification Opportunities for HireRight Holdings and Mastech Holdings

0.0

Correlation Coefficient

HireRight Holdings  Mastech Holdings

Pay attention - limited upside

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

Pair Corralation between HireRight Holdings and Mastech Holdings

If you would invest (100.00) in HireRight Holdings Corp on December 29, 2024 and sell it today you would earn a total of  100.00  from holding HireRight Holdings Corp 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

HireRight Holdings Corp  vs.  Mastech Holdings

HireRight Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days HireRight Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, HireRight Holdings is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Mastech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mastech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical 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 HireRight Holdings and Mastech Holdings

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

The idea behind HireRight Holdings Corp and Mastech Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.