Correlation Between Hays Plc and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Hays Plc 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 Hays Plc and ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hays plc and ManpowerGroup, you can compare the effects of market volatilities on Hays Plc 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 Hays Plc with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hays Plc and ManpowerGroup.
Diversification Opportunities for Hays Plc and ManpowerGroup
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hays and ManpowerGroup is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hays plc and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup and Hays Plc 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 Hays plc 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 Hays Plc i.e., Hays Plc and ManpowerGroup go up and down completely randomly.
Pair Corralation between Hays Plc and ManpowerGroup
Assuming the 90 days horizon Hays plc is expected to under-perform the ManpowerGroup. In addition to that, Hays Plc is 2.42 times more volatile than ManpowerGroup. It trades about -0.01 of its total potential returns per unit of risk. ManpowerGroup is currently generating about 0.19 per unit of volatility. If you would invest 5,750 in ManpowerGroup on September 2, 2024 and sell it today you would earn a total of 350.00 from holding ManpowerGroup or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hays plc vs. ManpowerGroup
Performance |
| Timeline |
| Hays plc |
| ManpowerGroup |
Hays Plc and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hays Plc and ManpowerGroup
The main advantage of trading using opposite Hays Plc and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hays Plc 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.| Hays Plc vs. National Bank Holdings | Hays Plc vs. SEI INVESTMENTS | Hays Plc vs. EAT WELL INVESTMENT | Hays Plc vs. SLR Investment Corp |
| ManpowerGroup vs. CDN IMPERIAL BANK | ManpowerGroup vs. Webster Financial | ManpowerGroup vs. JSC Halyk bank | ManpowerGroup vs. Regions Financial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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