Correlation Between BG Staffing and EVI Industries
Can any of the company-specific risk be diversified away by investing in both BG Staffing and EVI Industries 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 BG Staffing and EVI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Staffing and EVI Industries, you can compare the effects of market volatilities on BG Staffing and EVI Industries 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 BG Staffing with a short position of EVI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Staffing and EVI Industries.
Diversification Opportunities for BG Staffing and EVI Industries
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BGSF and EVI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BG Staffing and EVI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVI Industries and BG Staffing 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 BG Staffing are associated (or correlated) with EVI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVI Industries has no effect on the direction of BG Staffing i.e., BG Staffing and EVI Industries go up and down completely randomly.
Pair Corralation between BG Staffing and EVI Industries
Given the investment horizon of 90 days BG Staffing is expected to under-perform the EVI Industries. But the stock apears to be less risky and, when comparing its historical volatility, BG Staffing is 1.33 times less risky than EVI Industries. The stock trades about -0.02 of its potential returns per unit of risk. The EVI Industries is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,054 in EVI Industries on August 28, 2024 and sell it today you would lose (165.00) from holding EVI Industries or give up 8.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BG Staffing vs. EVI Industries
Performance |
| Timeline |
| BG Staffing |
| EVI Industries |
BG Staffing and EVI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BG Staffing and EVI Industries
The main advantage of trading using opposite BG Staffing and EVI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Staffing position performs unexpectedly, EVI Industries 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 EVI Industries will offset losses from the drop in EVI Industries' long position.| BG Staffing vs. Kelly Services A | BG Staffing vs. Korn Ferry | BG Staffing vs. Heidrick Struggles International | BG Staffing vs. Hudson Global |
| EVI Industries vs. DXP Enterprises | EVI Industries vs. Global Industrial Co | EVI Industries vs. Core Main | EVI Industries vs. Watsco 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |