Correlation Between Hackett and Bandwidth

Can any of the company-specific risk be diversified away by investing in both Hackett and Bandwidth 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 Bandwidth 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 Bandwidth, you can compare the effects of market volatilities on Hackett and Bandwidth 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 Bandwidth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hackett and Bandwidth.

Diversification Opportunities for Hackett and Bandwidth

0.4

Correlation Coefficient

Hackett  Bandwidth

Very weak diversification

The 3 months correlation between Hackett and Bandwidth is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Hackett Group and Bandwidth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandwidth 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 Bandwidth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandwidth has no effect on the direction of Hackett i.e., Hackett and Bandwidth go up and down completely randomly.

Pair Corralation between Hackett and Bandwidth

Given the investment horizon of 90 days The Hackett Group is expected to generate 0.72 times more return on investment than Bandwidth. However, The Hackett Group is 1.39 times less risky than Bandwidth. It trades about 0.06 of its potential returns per unit of risk. Bandwidth is currently generating about -0.2 per unit of risk. If you would invest  1,811  in The Hackett Group on September 1, 2025 and sell it today you would earn a total of  36.00  from holding The Hackett Group or generate 1.99% return on investment over 90 days.

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

The Hackett Group  vs.  Bandwidth

Hackett Group

Risk-Adjusted Performance

Weakest

Over the last 90 days The Hackett Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bandwidth

Risk-Adjusted Performance

Weakest

Over the last 90 days Bandwidth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Bandwidth is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hackett and Bandwidth

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

The idea behind The Hackett Group and Bandwidth 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.