Correlation Between Caldwell Partners and Kelly Services
Can any of the company-specific risk be diversified away by investing in both Caldwell Partners and Kelly Services 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 Caldwell Partners and Kelly Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Caldwell Partners and Kelly Services A, you can compare the effects of market volatilities on Caldwell Partners and Kelly Services 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 Caldwell Partners with a short position of Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caldwell Partners and Kelly Services.
Diversification Opportunities for Caldwell Partners and Kelly Services
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Caldwell and Kelly is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Caldwell Partners and Kelly Services A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services A and Caldwell Partners 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 The Caldwell Partners are associated (or correlated) with Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services A has no effect on the direction of Caldwell Partners i.e., Caldwell Partners and Kelly Services go up and down completely randomly.
Pair Corralation between Caldwell Partners and Kelly Services
Assuming the 90 days horizon The Caldwell Partners is expected to generate 2.8 times more return on investment than Kelly Services. However, Caldwell Partners is 2.8 times more volatile than Kelly Services A. It trades about 0.06 of its potential returns per unit of risk. Kelly Services A is currently generating about -0.05 per unit of risk. If you would invest 57.00 in The Caldwell Partners on August 29, 2024 and sell it today you would earn a total of 25.00 from holding The Caldwell Partners or generate 43.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Caldwell Partners vs. Kelly Services A
Performance |
| Timeline |
| Caldwell Partners |
| Kelly Services A |
Caldwell Partners and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caldwell Partners and Kelly Services
The main advantage of trading using opposite Caldwell Partners and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caldwell Partners position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| Caldwell Partners vs. Deere Company | Caldwell Partners vs. Columbus McKinnon | Caldwell Partners vs. Hyster Yale Materials Handling | Caldwell Partners vs. Manitowoc |
| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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