Correlation Between BG Staffing and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both BG Staffing and ManpowerGroup 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 ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Staffing and ManpowerGroup, you can compare the effects of market volatilities on BG Staffing and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Staffing and ManpowerGroup.
Diversification Opportunities for BG Staffing and ManpowerGroup
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BGSF and ManpowerGroup is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BG Staffing and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of BG Staffing i.e., BG Staffing and ManpowerGroup go up and down completely randomly.
Pair Corralation between BG Staffing and ManpowerGroup
Given the investment horizon of 90 days BG Staffing is expected to under-perform the ManpowerGroup. In addition to that, BG Staffing is 1.58 times more volatile than ManpowerGroup. It trades about -0.07 of its total potential returns per unit of risk. ManpowerGroup is currently generating about -0.03 per unit of volatility. If you would invest 8,185 in ManpowerGroup on November 2, 2024 and sell it today you would lose (2,161) from holding ManpowerGroup or give up 26.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BG Staffing vs. ManpowerGroup
Performance |
| Timeline |
| BG Staffing |
| ManpowerGroup |
BG Staffing and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BG Staffing and ManpowerGroup
The main advantage of trading using opposite BG Staffing and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Staffing position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup'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 |
| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. Heidrick Struggles International | ManpowerGroup vs. Korn Ferry | ManpowerGroup 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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