Correlation Between Hudson Global and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Hudson Global 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 Hudson Global and ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Global and ManpowerGroup, you can compare the effects of market volatilities on Hudson Global 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 Hudson Global with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Global and ManpowerGroup.
Diversification Opportunities for Hudson Global and ManpowerGroup
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hudson and ManpowerGroup is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 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 Hudson Global i.e., Hudson Global and ManpowerGroup go up and down completely randomly.
Pair Corralation between Hudson Global and ManpowerGroup
Given the investment horizon of 90 days Hudson Global is expected to under-perform the ManpowerGroup. In addition to that, Hudson Global is 1.96 times more volatile than ManpowerGroup. It trades about -0.07 of its total potential returns per unit of risk. ManpowerGroup is currently generating about -0.01 per unit of volatility. If you would invest 6,179 in ManpowerGroup on November 1, 2024 and sell it today you would lose (108.00) from holding ManpowerGroup or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Global vs. ManpowerGroup
Performance |
| Timeline |
| Hudson Global |
| ManpowerGroup |
Hudson Global and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Global and ManpowerGroup
The main advantage of trading using opposite Hudson Global and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global 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.| Hudson Global vs. Mastech Holdings | Hudson Global vs. Kforce Inc | Hudson Global vs. Kelly Services A | Hudson Global vs. Korn Ferry |
| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. Heidrick Struggles International | ManpowerGroup vs. Korn Ferry | ManpowerGroup vs. Hudson Global |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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