Correlation Between Hackett and CSP
Can any of the company-specific risk be diversified away by investing in both Hackett and CSP 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 Hackett and CSP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hackett Group and CSP Inc, you can compare the effects of market volatilities on Hackett and CSP 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 Hackett with a short position of CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and CSP.
Diversification Opportunities for Hackett and CSP
Weak diversification
The 3 months correlation between Hackett and CSP is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and Hackett 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 The Hackett Group are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Hackett i.e., Hackett and CSP go up and down completely randomly.
Pair Corralation between Hackett and CSP
Given the investment horizon of 90 days The Hackett Group is expected to under-perform the CSP. But the stock apears to be less risky and, when comparing its historical volatility, The Hackett Group is 1.86 times less risky than CSP. The stock trades about -0.13 of its potential returns per unit of risk. The CSP Inc is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,479 in CSP Inc on May 27, 2025 and sell it today you would lose (226.00) from holding CSP Inc or give up 15.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hackett Group vs. CSP Inc
Performance |
| Timeline |
| Hackett Group |
| CSP Inc |
Hackett and CSP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hackett and CSP
The main advantage of trading using opposite Hackett and CSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hackett position performs unexpectedly, CSP 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 CSP will offset losses from the drop in CSP's long position.| Hackett vs. Formula Systems 1985 | Hackett vs. TTEC Holdings | Hackett vs. N Able Inc | Hackett vs. Information Services Group |
Check out your portfolio center.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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |