Correlation Between ASGN and Unitronix
Can any of the company-specific risk be diversified away by investing in both ASGN and Unitronix 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 Unitronix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASGN Inc and Unitronix, you can compare the effects of market volatilities on ASGN and Unitronix 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 Unitronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Unitronix.
Diversification Opportunities for ASGN and Unitronix
Good diversification
The 3 months correlation between ASGN and Unitronix is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Unitronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronix 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 Unitronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronix has no effect on the direction of ASGN i.e., ASGN and Unitronix go up and down completely randomly.
Pair Corralation between ASGN and Unitronix
Given the investment horizon of 90 days ASGN Inc is expected to under-perform the Unitronix. But the stock apears to be less risky and, when comparing its historical volatility, ASGN Inc is 8.19 times less risky than Unitronix. The stock trades about -0.03 of its potential returns per unit of risk. The Unitronix is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Unitronix on August 28, 2024 and sell it today you would earn a total of 4.50 from holding Unitronix or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASGN Inc vs. Unitronix
Performance |
| Timeline |
| ASGN Inc |
| Unitronix |
ASGN and Unitronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASGN and Unitronix
The main advantage of trading using opposite ASGN and Unitronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN position performs unexpectedly, Unitronix 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 Unitronix will offset losses from the drop in Unitronix's long position.The idea behind ASGN Inc and Unitronix 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.| Unitronix vs. Leidos Holdings | Unitronix vs. CACI International | Unitronix vs. Parsons Corp | Unitronix vs. ASGN 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |