Correlation Between Jack Henry and ASGN
Can any of the company-specific risk be diversified away by investing in both Jack Henry 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 Jack Henry and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Henry Associates and ASGN Inc, you can compare the effects of market volatilities on Jack Henry 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 Jack Henry with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Henry and ASGN.
Diversification Opportunities for Jack Henry and ASGN
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jack and ASGN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jack Henry Associates and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Jack Henry 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 Jack Henry Associates 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 Jack Henry i.e., Jack Henry and ASGN go up and down completely randomly.
Pair Corralation between Jack Henry and ASGN
Given the investment horizon of 90 days Jack Henry Associates is expected to under-perform the ASGN. But the stock apears to be less risky and, when comparing its historical volatility, Jack Henry Associates is 3.3 times less risky than ASGN. The stock trades about -0.34 of its potential returns per unit of risk. The ASGN Inc is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 9,304 in ASGN Inc on August 24, 2024 and sell it today you would lose (389.00) from holding ASGN Inc or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack Henry Associates vs. ASGN Inc
Performance |
| Timeline |
| Jack Henry Associates |
| ASGN Inc |
Jack Henry and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Henry and ASGN
The main advantage of trading using opposite Jack Henry and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Henry 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.| Jack Henry vs. CACI International | Jack Henry vs. CDW Corp | Jack Henry vs. Broadridge Financial Solutions | Jack Henry vs. ExlService Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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