Correlation Between Hire Technologies and Caldwell Partners

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

By analyzing existing cross correlation between Hire Technologies and The Caldwell Partners, you can compare the effects of market volatilities on Hire Technologies and Caldwell Partners 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 Hire Technologies with a short position of Caldwell Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hire Technologies and Caldwell Partners.

Diversification Opportunities for Hire Technologies and Caldwell Partners

0.0

Correlation Coefficient

Hire Technologies  Caldwell Partners

Pay attention - limited upside

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

Pair Corralation between Hire Technologies and Caldwell Partners

If you would invest  80.00  in The Caldwell Partners on September 3, 2024 and sell it today you would lose (1.00) from holding The Caldwell Partners or give up 1.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Hire Technologies  vs.  The Caldwell Partners

Hire Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hire Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hire Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Caldwell Partners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Caldwell Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Caldwell Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hire Technologies and Caldwell Partners

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

The idea behind Hire Technologies and The Caldwell Partners 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.