Correlation Between Booz Allen and Critical Solutions
Can any of the company-specific risk be diversified away by investing in both Booz Allen and Critical Solutions 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 Booz Allen and Critical Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booz Allen Hamilton and Critical Solutions, you can compare the effects of market volatilities on Booz Allen and Critical Solutions 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 Booz Allen with a short position of Critical Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booz Allen and Critical Solutions.
Diversification Opportunities for Booz Allen and Critical Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Booz and Critical is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Booz Allen Hamilton and Critical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critical Solutions and Booz Allen 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 Booz Allen Hamilton are associated (or correlated) with Critical Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critical Solutions has no effect on the direction of Booz Allen i.e., Booz Allen and Critical Solutions go up and down completely randomly.
Pair Corralation between Booz Allen and Critical Solutions
If you would invest (100.00) in Critical Solutions on May 18, 2025 and sell it today you would earn a total of 100.00 from holding Critical Solutions or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Booz Allen Hamilton vs. Critical Solutions
Performance |
Timeline |
Booz Allen Hamilton |
Critical Solutions |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Booz Allen and Critical Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Booz Allen and Critical Solutions
The main advantage of trading using opposite Booz Allen and Critical Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booz Allen position performs unexpectedly, Critical Solutions 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 Critical Solutions will offset losses from the drop in Critical Solutions' long position.Booz Allen vs. Huron Consulting Group | Booz Allen vs. CRA International | Booz Allen vs. Forrester Research | Booz Allen vs. Exponent |
Critical Solutions vs. VizConnect | Critical Solutions vs. Blue Diamond Ventures | Critical Solutions vs. American Diversified Holdings | Critical Solutions vs. Sgd Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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