Correlation Between ASGN and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both ASGN and Cantaloupe 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 ASGN and Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASGN Inc and Cantaloupe, you can compare the effects of market volatilities on ASGN and Cantaloupe 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 ASGN with a short position of Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Cantaloupe.
Diversification Opportunities for ASGN and Cantaloupe
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASGN and Cantaloupe is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe and ASGN 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 ASGN Inc are associated (or correlated) with Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of ASGN i.e., ASGN and Cantaloupe go up and down completely randomly.
Pair Corralation between ASGN and Cantaloupe
Given the investment horizon of 90 days ASGN Inc is expected to generate 0.82 times more return on investment than Cantaloupe. However, ASGN Inc is 1.22 times less risky than Cantaloupe. It trades about -0.01 of its potential returns per unit of risk. Cantaloupe is currently generating about -0.04 per unit of risk. If you would invest 9,393 in ASGN Inc on October 26, 2024 and sell it today you would lose (228.00) from holding ASGN Inc or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASGN Inc vs. Cantaloupe
Performance |
| Timeline |
| ASGN Inc |
| Cantaloupe |
ASGN and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASGN and Cantaloupe
The main advantage of trading using opposite ASGN and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.The idea behind ASGN Inc and Cantaloupe pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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