Correlation Between International Money and ASGN
Can any of the company-specific risk be diversified away by investing in both International Money 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 International Money and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Money Express and ASGN Inc, you can compare the effects of market volatilities on International Money 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 International Money with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Money and ASGN.
Diversification Opportunities for International Money and ASGN
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and ASGN is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and International Money 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 International Money Express 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 International Money i.e., International Money and ASGN go up and down completely randomly.
Pair Corralation between International Money and ASGN
Given the investment horizon of 90 days International Money Express is expected to generate 0.43 times more return on investment than ASGN. However, International Money Express is 2.32 times less risky than ASGN. It trades about -0.04 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.22 per unit of risk. If you would invest 2,160 in International Money Express on September 12, 2024 and sell it today you would lose (18.00) from holding International Money Express or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Money Express vs. ASGN Inc
Performance |
| Timeline |
| International Money |
| ASGN Inc |
International Money and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Money and ASGN
The main advantage of trading using opposite International Money and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Money 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.| International Money vs. NetScout Systems | International Money vs. Consensus Cloud Solutions | International Money vs. CSG Systems International | International Money vs. EverCommerce |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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