Correlation Between Adecco Group and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both Adecco Group 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 Adecco Group and HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adecco Group AG and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on Adecco Group 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 Adecco Group with a short position of HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and HUDSON GLOBAL.
Diversification Opportunities for Adecco Group and HUDSON GLOBAL
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adecco and HUDSON is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG 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 Adecco Group 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 Adecco Group AG 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 Adecco Group i.e., Adecco Group and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between Adecco Group and HUDSON GLOBAL
Assuming the 90 days trading horizon Adecco Group AG is expected to under-perform the HUDSON GLOBAL. But the stock apears to be less risky and, when comparing its historical volatility, Adecco Group AG is 1.31 times less risky than HUDSON GLOBAL. The stock trades about -0.06 of its potential returns per unit of risk. The HUDSON GLOBAL INCDL 001 is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,550 in HUDSON GLOBAL INCDL 001 on November 3, 2024 and sell it today you would lose (340.00) from holding HUDSON GLOBAL INCDL 001 or give up 21.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adecco Group AG vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| Adecco Group AG |
| HUDSON GLOBAL INCDL |
Adecco Group and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco Group and HUDSON GLOBAL
The main advantage of trading using opposite Adecco Group and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco Group 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.| Adecco Group vs. Chunghwa Telecom Co | Adecco Group vs. Telecom Argentina SA | Adecco Group vs. Transport International Holdings | Adecco Group vs. TELECOM ITALIA |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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