Correlation Between HUDSON GLOBAL and Adecco Group
Can any of the company-specific risk be diversified away by investing in both HUDSON GLOBAL and Adecco Group 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 HUDSON GLOBAL and Adecco Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUDSON GLOBAL INCDL 001 and Adecco Group AG, you can compare the effects of market volatilities on HUDSON GLOBAL and Adecco Group 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 HUDSON GLOBAL with a short position of Adecco Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUDSON GLOBAL and Adecco Group.
Diversification Opportunities for HUDSON GLOBAL and Adecco Group
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUDSON and Adecco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUDSON GLOBAL INCDL 001 and Adecco Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group AG and HUDSON GLOBAL 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 HUDSON GLOBAL INCDL 001 are associated (or correlated) with Adecco Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group AG has no effect on the direction of HUDSON GLOBAL i.e., HUDSON GLOBAL and Adecco Group go up and down completely randomly.
Pair Corralation between HUDSON GLOBAL and Adecco Group
Assuming the 90 days trading horizon HUDSON GLOBAL INCDL 001 is expected to under-perform the Adecco Group. In addition to that, HUDSON GLOBAL is 1.72 times more volatile than Adecco Group AG. It trades about -0.08 of its total potential returns per unit of risk. Adecco Group AG is currently generating about 0.06 per unit of volatility. If you would invest 1,150 in Adecco Group AG on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Adecco Group AG or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUDSON GLOBAL INCDL 001 vs. Adecco Group AG
Performance |
| Timeline |
| HUDSON GLOBAL INCDL |
| Adecco Group AG |
HUDSON GLOBAL and Adecco Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUDSON GLOBAL and Adecco Group
The main advantage of trading using opposite HUDSON GLOBAL and Adecco Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUDSON GLOBAL position performs unexpectedly, Adecco Group 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 Adecco Group will offset losses from the drop in Adecco Group's long position.| HUDSON GLOBAL vs. HANOVER INSURANCE | HUDSON GLOBAL vs. The Hanover Insurance | HUDSON GLOBAL vs. NURAN WIRELESS INC | HUDSON GLOBAL vs. CITY OFFICE REIT |
| Adecco Group vs. United Natural Foods | Adecco Group vs. Austevoll Seafood ASA | Adecco Group vs. TreeHouse Foods | Adecco Group vs. PARKEN Sport Entertainment |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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