Correlation Between TechnoPro Holdings and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both TechnoPro Holdings and PERSOL HOLDINGS 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 TechnoPro Holdings and PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnoPro Holdings and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on TechnoPro Holdings and PERSOL HOLDINGS 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 TechnoPro Holdings with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnoPro Holdings and PERSOL HOLDINGS.
Diversification Opportunities for TechnoPro Holdings and PERSOL HOLDINGS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TechnoPro and PERSOL is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TechnoPro Holdings and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and TechnoPro 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 TechnoPro Holdings are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of TechnoPro Holdings i.e., TechnoPro Holdings and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between TechnoPro Holdings and PERSOL HOLDINGS
Assuming the 90 days horizon TechnoPro Holdings is expected to generate 1.12 times more return on investment than PERSOL HOLDINGS. However, TechnoPro Holdings is 1.12 times more volatile than PERSOL HOLDINGS LTD. It trades about 0.21 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about 0.05 per unit of risk. If you would invest 1,800 in TechnoPro Holdings on November 2, 2024 and sell it today you would earn a total of 140.00 from holding TechnoPro Holdings or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnoPro Holdings vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| TechnoPro Holdings |
| PERSOL HOLDINGS LTD |
TechnoPro Holdings and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnoPro Holdings and PERSOL HOLDINGS
The main advantage of trading using opposite TechnoPro Holdings and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnoPro Holdings position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.| TechnoPro Holdings vs. Recruit Holdings Co | TechnoPro Holdings vs. Randstad NV | TechnoPro Holdings vs. Adecco Group AG | TechnoPro Holdings vs. PERSOL HOLDINGS LTD |
| PERSOL HOLDINGS vs. Recruit Holdings Co | PERSOL HOLDINGS vs. Randstad NV | PERSOL HOLDINGS vs. Adecco Group AG | PERSOL HOLDINGS vs. TRINET GROUP INC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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