Correlation Between Hays Plc and Cross Country
Can any of the company-specific risk be diversified away by investing in both Hays Plc and Cross Country 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 Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hays plc and Cross Country Healthcare, you can compare the effects of market volatilities on Hays Plc and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hays Plc and Cross Country.
Diversification Opportunities for Hays Plc and Cross Country
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hays and Cross is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hays plc and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Hays Plc i.e., Hays Plc and Cross Country go up and down completely randomly.
Pair Corralation between Hays Plc and Cross Country
Assuming the 90 days horizon Hays plc is expected to generate 0.86 times more return on investment than Cross Country. However, Hays plc is 1.16 times less risky than Cross Country. It trades about -0.01 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.06 per unit of risk. If you would invest 119.00 in Hays plc on August 31, 2024 and sell it today you would lose (26.00) from holding Hays plc or give up 21.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Hays plc vs. Cross Country Healthcare
Performance |
| Timeline |
| Hays plc |
| Cross Country Healthcare |
Hays Plc and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hays Plc and Cross Country
The main advantage of trading using opposite Hays Plc and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hays Plc position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Hays Plc vs. GFL ENVIRONM | Hays Plc vs. Cleanaway Waste Management | Hays Plc vs. Treasury Wine Estates | Hays Plc vs. Reliance Steel Aluminum |
| Cross Country vs. Korn Ferry | Cross Country vs. Hays plc | Cross Country vs. Superior Plus Corp | Cross Country vs. Origin Agritech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |