Correlation Between Adecco and Hudson Global
Can any of the company-specific risk be diversified away by investing in both Adecco 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 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 and Hudson Global, you can compare the effects of market volatilities on Adecco 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 with a short position of Hudson Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco and Hudson Global.
Diversification Opportunities for Adecco and Hudson Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adecco and Hudson is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global and Adecco 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 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 has no effect on the direction of Adecco i.e., Adecco and Hudson Global go up and down completely randomly.
Pair Corralation between Adecco and Hudson Global
Assuming the 90 days horizon Adecco Group is expected to under-perform the Hudson Global. But the pink sheet apears to be less risky and, when comparing its historical volatility, Adecco Group is 30.27 times less risky than Hudson Global. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Hudson Global is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,279 in Hudson Global on September 12, 2024 and sell it today you would lose (795.00) from holding Hudson Global or give up 34.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Adecco Group vs. Hudson Global
Performance |
| Timeline |
| Adecco Group |
| Hudson Global |
Adecco and Hudson Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco and Hudson Global
The main advantage of trading using opposite Adecco and Hudson Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco 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 vs. ManpowerGroup | Adecco vs. Robert Half International | Adecco vs. Hire Technologies | Adecco vs. The Caldwell Partners |
| Hudson Global vs. Mastech Holdings | Hudson Global vs. Kforce Inc | Hudson Global vs. Kelly Services A | Hudson Global vs. Korn Ferry |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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