Correlation Between Mastech Holdings and Hirequest

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

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

Diversification Opportunities for Mastech Holdings and Hirequest

-0.07

Correlation Coefficient

Mastech Holdings  Hirequest

Good diversification

The 3 months correlation between Mastech and Hirequest is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mastech Holdings and Hirequest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hirequest and Mastech 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 Mastech Holdings 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 Mastech Holdings i.e., Mastech Holdings and Hirequest go up and down completely randomly.

Pair Corralation between Mastech Holdings and Hirequest

Considering the 90-day investment horizon Mastech Holdings is expected to under-perform the Hirequest. In addition to that, Mastech Holdings is 1.48 times more volatile than Hirequest. It trades about -0.01 of its total potential returns per unit of risk. Hirequest is currently generating about -0.01 per unit of volatility. If you would invest  1,030  in Hirequest on May 6, 2025 and sell it today you would lose (52.00) from holding Hirequest or give up 5.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mastech Holdings  vs.  Hirequest

Mastech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mastech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Mastech Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Hirequest

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hirequest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Hirequest is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Mastech Holdings and Hirequest

The main advantage of trading using opposite Mastech Holdings and Hirequest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastech 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.

The idea behind Mastech Holdings and Hirequest 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.