Correlation Between Cross Country and ASGN
Can any of the company-specific risk be diversified away by investing in both Cross Country and ASGN 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 Cross Country and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cross Country Healthcare and ASGN Inc, you can compare the effects of market volatilities on Cross Country and ASGN 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 Cross Country with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cross Country and ASGN.
Diversification Opportunities for Cross Country and ASGN
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cross and ASGN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cross Country Healthcare and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Cross Country 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 Cross Country Healthcare are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Cross Country i.e., Cross Country and ASGN go up and down completely randomly.
Pair Corralation between Cross Country and ASGN
Given the investment horizon of 90 days Cross Country Healthcare is expected to under-perform the ASGN. In addition to that, Cross Country is 1.57 times more volatile than ASGN Inc. It trades about -0.06 of its total potential returns per unit of risk. ASGN Inc is currently generating about -0.03 per unit of volatility. If you would invest 9,393 in ASGN Inc on August 28, 2024 and sell it today you would lose (259.00) from holding ASGN Inc or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cross Country Healthcare vs. ASGN Inc
Performance |
| Timeline |
| Cross Country Healthcare |
| ASGN Inc |
Cross Country and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cross Country and ASGN
The main advantage of trading using opposite Cross Country and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cross Country position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Cross Country vs. ASGN Inc | Cross Country vs. Kforce Inc | Cross Country vs. Kelly Services A | Cross Country vs. AMN Healthcare Services |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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