Correlation Between Information Services and ASGN
Can any of the company-specific risk be diversified away by investing in both Information Services and ASGN 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 Information Services and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services Group and ASGN Inc, you can compare the effects of market volatilities on Information Services and ASGN 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 Information Services with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and ASGN.
Diversification Opportunities for Information Services and ASGN
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Information and ASGN is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Information Services Group and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Information Services 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 Information Services Group are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Information Services i.e., Information Services and ASGN go up and down completely randomly.
Pair Corralation between Information Services and ASGN
Considering the 90-day investment horizon Information Services Group is expected to generate 0.97 times more return on investment than ASGN. However, Information Services Group is 1.03 times less risky than ASGN. It trades about 0.04 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.01 per unit of risk. If you would invest 312.00 in Information Services Group on October 26, 2024 and sell it today you would earn a total of 11.00 from holding Information Services Group or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services Group vs. ASGN Inc
Performance |
| Timeline |
| Information Services |
| ASGN Inc |
Information Services and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and ASGN
The main advantage of trading using opposite Information Services and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Information Services vs. Formula Systems 1985 | Information Services vs. CSP Inc | Information Services vs. Nayax | Information Services vs. The Hackett Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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