Correlation Between Jack Henry and Verint Systems
Can any of the company-specific risk be diversified away by investing in both Jack Henry and Verint Systems 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 Jack Henry and Verint Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Henry Associates and Verint Systems, you can compare the effects of market volatilities on Jack Henry and Verint Systems 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 Jack Henry with a short position of Verint Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Henry and Verint Systems.
Diversification Opportunities for Jack Henry and Verint Systems
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jack and Verint is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jack Henry Associates and Verint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems and Jack Henry 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 Jack Henry Associates are associated (or correlated) with Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of Jack Henry i.e., Jack Henry and Verint Systems go up and down completely randomly.
Pair Corralation between Jack Henry and Verint Systems
Given the investment horizon of 90 days Jack Henry Associates is expected to under-perform the Verint Systems. But the stock apears to be less risky and, when comparing its historical volatility, Jack Henry Associates is 2.29 times less risky than Verint Systems. The stock trades about -0.02 of its potential returns per unit of risk. The Verint Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,094 in Verint Systems on January 26, 2024 and sell it today you would earn a total of 10.00 from holding Verint Systems or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack Henry Associates vs. Verint Systems
Performance |
| Timeline |
| Jack Henry Associates |
| Verint Systems |
Jack Henry and Verint Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Henry and Verint Systems
The main advantage of trading using opposite Jack Henry and Verint Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Henry position performs unexpectedly, Verint Systems 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 Verint Systems will offset losses from the drop in Verint Systems' long position.| Jack Henry vs. CACI International | Jack Henry vs. CDW Corp | Jack Henry vs. Broadridge Financial Solutions | Jack Henry vs. ExlService Holdings |
| Verint Systems vs. Sterling Check Corp | Verint Systems vs. Repay Holdings Corp | Verint Systems vs. SPS Commerce | Verint Systems vs. Evertec |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |