Correlation Between Mastech Holdings and HireRight Holdings

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

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

Diversification Opportunities for Mastech Holdings and HireRight Holdings

0.5

Correlation Coefficient

Mastech Holdings  HireRight Holdings

Very weak diversification

The 3 months correlation between Mastech and HireRight is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mastech Holdings and HireRight Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HireRight Holdings Corp and Mastech 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 Mastech Holdings are associated (or correlated) with HireRight Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HireRight Holdings Corp has no effect on the direction of Mastech Holdings i.e., Mastech Holdings and HireRight Holdings go up and down completely randomly.

Pair Corralation between Mastech Holdings and HireRight Holdings

If you would invest  1,012  in Mastech Holdings on August 31, 2024 and sell it today you would earn a total of  528.00  from holding Mastech Holdings or generate 52.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Mastech Holdings  vs.  HireRight Holdings Corp

Mastech Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mastech Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Mastech Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

HireRight Holdings Corp

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Mastech Holdings and HireRight Holdings

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

The idea behind Mastech Holdings and HireRight Holdings Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.