Correlation Between Hudson Global and Staffing 360
Can any of the company-specific risk be diversified away by investing in both Hudson Global and Staffing 360 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 Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Global and Staffing 360 Solutions, you can compare the effects of market volatilities on Hudson Global and Staffing 360 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 Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Global and Staffing 360.
Diversification Opportunities for Hudson Global and Staffing 360
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hudson and Staffing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions 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 Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Hudson Global i.e., Hudson Global and Staffing 360 go up and down completely randomly.
Pair Corralation between Hudson Global and Staffing 360
Given the investment horizon of 90 days Hudson Global is expected to generate 4.57 times more return on investment than Staffing 360. However, Hudson Global is 4.57 times more volatile than Staffing 360 Solutions. It trades about 0.04 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about -0.01 per unit of risk. If you would invest 2,420 in Hudson Global on August 30, 2024 and sell it today you would lose (942.00) from holding Hudson Global or give up 38.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.19% |
| Values | Daily Returns |
Hudson Global vs. Staffing 360 Solutions
Performance |
| Timeline |
| Hudson Global |
| Staffing 360 Solutions |
Hudson Global and Staffing 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Global and Staffing 360
The main advantage of trading using opposite Hudson Global and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.| Hudson Global vs. Mastech Holdings | Hudson Global vs. Kforce Inc | Hudson Global vs. Kelly Services A | Hudson Global vs. Korn Ferry |
| Staffing 360 vs. Robert Half International | Staffing 360 vs. ManpowerGroup | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Korn Ferry |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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