Correlation Between PERSOL HOLDINGS and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both PERSOL HOLDINGS and HUDSON GLOBAL 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 PERSOL HOLDINGS and HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PERSOL HOLDINGS LTD and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on PERSOL HOLDINGS and HUDSON GLOBAL 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 PERSOL HOLDINGS with a short position of HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PERSOL HOLDINGS and HUDSON GLOBAL.
Diversification Opportunities for PERSOL HOLDINGS and HUDSON GLOBAL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PERSOL and HUDSON is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PERSOL HOLDINGS LTD and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL and PERSOL 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 PERSOL HOLDINGS LTD are associated (or correlated) with HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of PERSOL HOLDINGS i.e., PERSOL HOLDINGS and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between PERSOL HOLDINGS and HUDSON GLOBAL
Assuming the 90 days horizon PERSOL HOLDINGS LTD is expected to generate 1.09 times more return on investment than HUDSON GLOBAL. However, PERSOL HOLDINGS is 1.09 times more volatile than HUDSON GLOBAL INCDL 001. It trades about 0.05 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about -0.05 per unit of risk. If you would invest 124.00 in PERSOL HOLDINGS LTD on November 3, 2024 and sell it today you would earn a total of 21.00 from holding PERSOL HOLDINGS LTD or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PERSOL HOLDINGS LTD vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| PERSOL HOLDINGS LTD |
| HUDSON GLOBAL INCDL |
PERSOL HOLDINGS and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PERSOL HOLDINGS and HUDSON GLOBAL
The main advantage of trading using opposite PERSOL HOLDINGS and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PERSOL HOLDINGS position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| PERSOL HOLDINGS vs. WisdomTree Investments | PERSOL HOLDINGS vs. Luckin Coffee | PERSOL HOLDINGS vs. PennyMac Mortgage Investment | PERSOL HOLDINGS vs. URBAN OUTFITTERS |
| HUDSON GLOBAL vs. PLANT VEDA FOODS | HUDSON GLOBAL vs. Singapore Telecommunications Limited | HUDSON GLOBAL vs. LIFEWAY FOODS | HUDSON GLOBAL vs. CAL MAINE FOODS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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