Correlation Between Adecco and TechnoPro Holdings
Can any of the company-specific risk be diversified away by investing in both Adecco and TechnoPro 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 and TechnoPro Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adecco Group and TechnoPro Holdings, you can compare the effects of market volatilities on Adecco and TechnoPro 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 with a short position of TechnoPro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco and TechnoPro Holdings.
Diversification Opportunities for Adecco and TechnoPro Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adecco and TechnoPro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group and TechnoPro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoPro Holdings 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 TechnoPro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoPro Holdings has no effect on the direction of Adecco i.e., Adecco and TechnoPro Holdings go up and down completely randomly.
Pair Corralation between Adecco and TechnoPro Holdings
If you would invest (100.00) in TechnoPro Holdings on January 15, 2025 and sell it today you would earn a total of 100.00 from holding TechnoPro Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Adecco Group vs. TechnoPro Holdings
Performance |
| Timeline |
| Adecco Group |
| TechnoPro Holdings |
Risk-Adjusted Performance
Good
Weak | Strong |
Adecco and TechnoPro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco and TechnoPro Holdings
The main advantage of trading using opposite Adecco and TechnoPro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco position performs unexpectedly, TechnoPro 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 TechnoPro Holdings will offset losses from the drop in TechnoPro Holdings' long position.| Adecco vs. ManpowerGroup | Adecco vs. Robert Half International | Adecco vs. The Caldwell Partners | Adecco vs. Trucept |
| TechnoPro Holdings vs. The Caldwell Partners | TechnoPro Holdings vs. Trucept | TechnoPro Holdings vs. Futuris Company | TechnoPro Holdings vs. Adecco Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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