Correlation Between BG Staffing and Hirequest
Can any of the company-specific risk be diversified away by investing in both BG Staffing and Hirequest 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 Hirequest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Staffing and Hirequest, you can compare the effects of market volatilities on BG Staffing and Hirequest 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 Hirequest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Staffing and Hirequest.
Diversification Opportunities for BG Staffing and Hirequest
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BGSF and Hirequest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BG Staffing and Hirequest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hirequest 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 Hirequest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hirequest has no effect on the direction of BG Staffing i.e., BG Staffing and Hirequest go up and down completely randomly.
Pair Corralation between BG Staffing and Hirequest
Given the investment horizon of 90 days BG Staffing is expected to generate 1.35 times more return on investment than Hirequest. However, BG Staffing is 1.35 times more volatile than Hirequest. It trades about 0.03 of its potential returns per unit of risk. Hirequest is currently generating about -0.1 per unit of risk. If you would invest 524.00 in BG Staffing on November 1, 2024 and sell it today you would earn a total of 4.00 from holding BG Staffing or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BG Staffing vs. Hirequest
Performance |
| Timeline |
| BG Staffing |
| Hirequest |
BG Staffing and Hirequest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BG Staffing and Hirequest
The main advantage of trading using opposite BG Staffing and Hirequest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Staffing position performs unexpectedly, Hirequest 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 Hirequest will offset losses from the drop in Hirequest's long position.| BG Staffing vs. Kelly Services A | BG Staffing vs. Korn Ferry | BG Staffing vs. Heidrick Struggles International | BG Staffing vs. Hudson Global |
| Hirequest vs. Kelly Services B | Hirequest vs. Kforce Inc | Hirequest vs. Heidrick Struggles International | Hirequest vs. Hudson Global |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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