Correlation Between Mammoth Energy and Harte Hanks

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

By analyzing existing cross correlation between Mammoth Energy Services and Harte Hanks, you can compare the effects of market volatilities on Mammoth Energy and Harte Hanks 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 Mammoth Energy with a short position of Harte Hanks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mammoth Energy and Harte Hanks.

Diversification Opportunities for Mammoth Energy and Harte Hanks

0.65

Correlation Coefficient

Mammoth Energy  Harte Hanks

Poor diversification

The 3 months correlation between Mammoth and Harte is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mammoth Energy Services and Harte Hanks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harte Hanks and Mammoth Energy 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 Mammoth Energy Services are associated (or correlated) with Harte Hanks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harte Hanks has no effect on the direction of Mammoth Energy i.e., Mammoth Energy and Harte Hanks go up and down completely randomly.

Pair Corralation between Mammoth Energy and Harte Hanks

Given the investment horizon of 90 days Mammoth Energy Services is expected to under-perform the Harte Hanks. In addition to that, Mammoth Energy is 1.44 times more volatile than Harte Hanks. It trades about -0.09 of its total potential returns per unit of risk. Harte Hanks is currently generating about -0.04 per unit of volatility. If you would invest  522.00  in Harte Hanks on December 28, 2024 and sell it today you would lose (47.00) from holding Harte Hanks or give up 9.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Mammoth Energy Services  vs.  Harte Hanks

Mammoth Energy Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mammoth Energy Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Harte Hanks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harte Hanks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical indicators 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 Mammoth Energy and Harte Hanks

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

The idea behind Mammoth Energy Services and Harte Hanks 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.