Correlation Between DLH Holdings and Hirequest
Can any of the company-specific risk be diversified away by investing in both DLH Holdings and Hirequest 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 DLH Holdings and Hirequest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DLH Holdings Corp and Hirequest, you can compare the effects of market volatilities on DLH Holdings and Hirequest 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 DLH Holdings with a short position of Hirequest. Check out your portfolio center. Please also check ongoing floating volatility patterns of DLH Holdings and Hirequest.
Diversification Opportunities for DLH Holdings and Hirequest
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DLH and Hirequest is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding DLH Holdings Corp and Hirequest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hirequest and DLH 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 DLH Holdings Corp are associated (or correlated) with Hirequest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hirequest has no effect on the direction of DLH Holdings i.e., DLH Holdings and Hirequest go up and down completely randomly.
Pair Corralation between DLH Holdings and Hirequest
Given the investment horizon of 90 days DLH Holdings Corp is expected to under-perform the Hirequest. But the stock apears to be less risky and, when comparing its historical volatility, DLH Holdings Corp is 1.27 times less risky than Hirequest. The stock trades about -0.01 of its potential returns per unit of risk. The Hirequest is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,447 in Hirequest on January 25, 2024 and sell it today you would lose (212.00) from holding Hirequest or give up 14.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DLH Holdings Corp vs. Hirequest
Performance |
| Timeline |
| DLH Holdings Corp |
| Hirequest |
DLH Holdings and Hirequest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DLH Holdings and Hirequest
The main advantage of trading using opposite DLH Holdings and Hirequest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DLH Holdings position performs unexpectedly, Hirequest 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 Hirequest will offset losses from the drop in Hirequest's long position.| DLH Holdings vs. First Advantage Corp | DLH Holdings vs. Discount Print USA | DLH Holdings vs. Cass Information Systems | DLH Holdings vs. Civeo Corp |
| Hirequest vs. Kforce Inc | Hirequest vs. Heidrick Struggles International | Hirequest vs. Hudson Global | Hirequest vs. Kelly Services A |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |