Correlation Between Adecco Group and Mastech Holdings
Can any of the company-specific risk be diversified away by investing in both Adecco Group and Mastech 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 Adecco Group and Mastech Holdings 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 Mastech Holdings, you can compare the effects of market volatilities on Adecco Group and Mastech 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 Adecco Group with a short position of Mastech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and Mastech Holdings.
Diversification Opportunities for Adecco Group and Mastech Holdings
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adecco and Mastech is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and Mastech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastech Holdings 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 Mastech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastech Holdings has no effect on the direction of Adecco Group i.e., Adecco Group and Mastech Holdings go up and down completely randomly.
Pair Corralation between Adecco Group and Mastech Holdings
Assuming the 90 days horizon Adecco Group AG is expected to under-perform the Mastech Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Adecco Group AG is 2.07 times less risky than Mastech Holdings. The pink sheet trades about -0.18 of its potential returns per unit of risk. The Mastech Holdings is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Mastech Holdings on September 1, 2024 and sell it today you would earn a total of 566.00 from holding Mastech Holdings or generate 58.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adecco Group AG vs. Mastech Holdings
Performance |
| Timeline |
| Adecco Group AG |
| Mastech Holdings |
Adecco Group and Mastech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco Group and Mastech Holdings
The main advantage of trading using opposite Adecco Group and Mastech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco Group position performs unexpectedly, Mastech 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 Mastech Holdings will offset losses from the drop in Mastech Holdings' long position.| Adecco Group vs. Hudson Global | Adecco Group vs. Mastech Holdings | Adecco Group vs. Kforce Inc | Adecco Group vs. Kelly Services A |
| Mastech Holdings vs. EVI Industries | Mastech Holdings vs. LGL Group | Mastech Holdings vs. BG Staffing | Mastech Holdings vs. Issuer Direct Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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