Correlation Between GDS Holdings and ASGN
Can any of the company-specific risk be diversified away by investing in both GDS Holdings 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 GDS Holdings and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDS Holdings and ASGN Inc, you can compare the effects of market volatilities on GDS Holdings 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 GDS Holdings with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDS Holdings and ASGN.
Diversification Opportunities for GDS Holdings and ASGN
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GDS and ASGN is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding GDS Holdings and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and GDS Holdings 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 GDS Holdings 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 GDS Holdings i.e., GDS Holdings and ASGN go up and down completely randomly.
Pair Corralation between GDS Holdings and ASGN
Considering the 90-day investment horizon GDS Holdings is expected to under-perform the ASGN. In addition to that, GDS Holdings is 1.92 times more volatile than ASGN Inc. It trades about -0.1 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 |
GDS Holdings vs. ASGN Inc
Performance |
| Timeline |
| GDS Holdings |
| ASGN Inc |
GDS Holdings and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDS Holdings and ASGN
The main advantage of trading using opposite GDS Holdings and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDS Holdings 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.| GDS Holdings vs. Oneconnect Financial Technology | GDS Holdings vs. Global Business Travel | GDS Holdings vs. Alight Inc | GDS Holdings vs. CS Disco LLC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |