Correlation Between Hudson Global and Randstad
Can any of the company-specific risk be diversified away by investing in both Hudson Global and Randstad 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 Randstad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Global and Randstad NV, you can compare the effects of market volatilities on Hudson Global and Randstad 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 Randstad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Global and Randstad.
Diversification Opportunities for Hudson Global and Randstad
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hudson and Randstad is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and Randstad NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Randstad NV 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 Randstad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Randstad NV has no effect on the direction of Hudson Global i.e., Hudson Global and Randstad go up and down completely randomly.
Pair Corralation between Hudson Global and Randstad
Given the investment horizon of 90 days Hudson Global is expected to generate 48.96 times more return on investment than Randstad. However, Hudson Global is 48.96 times more volatile than Randstad NV. It trades about 0.08 of its potential returns per unit of risk. Randstad NV is currently generating about -0.1 per unit of risk. If you would invest 1,526 in Hudson Global on September 1, 2024 and sell it today you would lose (48.00) from holding Hudson Global or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 64.8% |
| Values | Daily Returns |
Hudson Global vs. Randstad NV
Performance |
| Timeline |
| Hudson Global |
| Randstad NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hudson Global and Randstad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Global and Randstad
The main advantage of trading using opposite Hudson Global and Randstad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global position performs unexpectedly, Randstad 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 Randstad will offset losses from the drop in Randstad's long position.| Hudson Global vs. Mastech Holdings | Hudson Global vs. Kforce Inc | Hudson Global vs. Kelly Services A | Hudson Global vs. Korn Ferry |
| Randstad vs. Randstad Holdings NV | Randstad vs. Heidrick Struggles International | Randstad vs. Hudson Global | Randstad vs. Barrett Business Services |
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 Stocks Directory module to find actively traded stocks across global markets.
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