Correlation Between Adecco Group and Randstad Holdings
Can any of the company-specific risk be diversified away by investing in both Adecco Group and Randstad 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 Randstad 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 Randstad Holdings NV, you can compare the effects of market volatilities on Adecco Group and Randstad 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 Randstad Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and Randstad Holdings.
Diversification Opportunities for Adecco Group and Randstad Holdings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adecco and Randstad is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and Randstad Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Randstad 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 Randstad Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Randstad Holdings has no effect on the direction of Adecco Group i.e., Adecco Group and Randstad Holdings go up and down completely randomly.
Pair Corralation between Adecco Group and Randstad Holdings
Assuming the 90 days horizon Adecco Group AG is expected to under-perform the Randstad Holdings. In addition to that, Adecco Group is 2.01 times more volatile than Randstad Holdings NV. It trades about -0.18 of its total potential returns per unit of risk. Randstad Holdings NV is currently generating about -0.12 per unit of volatility. If you would invest 2,300 in Randstad Holdings NV on September 1, 2024 and sell it today you would lose (104.00) from holding Randstad Holdings NV or give up 4.52% 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. Randstad Holdings NV
Performance |
| Timeline |
| Adecco Group AG |
| Randstad Holdings |
Adecco Group and Randstad Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco Group and Randstad Holdings
The main advantage of trading using opposite Adecco Group and Randstad Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco Group position performs unexpectedly, Randstad 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 Randstad Holdings will offset losses from the drop in Randstad Holdings' long position.| Adecco Group vs. Hudson Global | Adecco Group vs. Mastech Holdings | Adecco Group vs. Kforce Inc | Adecco Group vs. Kelly Services A |
| Randstad Holdings vs. The Caldwell Partners | Randstad Holdings vs. Futuris Company | Randstad Holdings vs. Kelly Services A | Randstad Holdings vs. Heidrick Struggles International |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |