Correlation Between Hudson Global and RecruiterCom
Can any of the company-specific risk be diversified away by investing in both Hudson Global and RecruiterCom 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 RecruiterCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Global and RecruiterCom Group, you can compare the effects of market volatilities on Hudson Global and RecruiterCom 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 RecruiterCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Global and RecruiterCom.
Diversification Opportunities for Hudson Global and RecruiterCom
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hudson and RecruiterCom is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and RecruiterCom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RecruiterCom Group 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 RecruiterCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RecruiterCom Group has no effect on the direction of Hudson Global i.e., Hudson Global and RecruiterCom go up and down completely randomly.
Pair Corralation between Hudson Global and RecruiterCom
Given the investment horizon of 90 days Hudson Global is expected to generate 14.65 times more return on investment than RecruiterCom. However, Hudson Global is 14.65 times more volatile than RecruiterCom Group. It trades about 0.08 of its potential returns per unit of risk. RecruiterCom Group is currently generating about 0.12 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 Against |
| Strength | Insignificant |
| Accuracy | 67.2% |
| Values | Daily Returns |
Hudson Global vs. RecruiterCom Group
Performance |
| Timeline |
| Hudson Global |
| RecruiterCom Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Hudson Global and RecruiterCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Global and RecruiterCom
The main advantage of trading using opposite Hudson Global and RecruiterCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global position performs unexpectedly, RecruiterCom 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 RecruiterCom will offset losses from the drop in RecruiterCom's long position.| Hudson Global vs. Mastech Holdings | Hudson Global vs. Kforce Inc | Hudson Global vs. Kelly Services A | Hudson Global vs. Korn Ferry |
| RecruiterCom vs. The Caldwell Partners | RecruiterCom vs. Hire Technologies | RecruiterCom vs. Trucept | RecruiterCom vs. Randstad Holdings NV |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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