Correlation Between GEE and Recruit Holdings
Can any of the company-specific risk be diversified away by investing in both GEE and Recruit Holdings 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 GEE and Recruit Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEE Group and Recruit Holdings Co, you can compare the effects of market volatilities on GEE and Recruit Holdings 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 GEE with a short position of Recruit Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEE and Recruit Holdings.
Diversification Opportunities for GEE and Recruit Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEE and Recruit is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and Recruit Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Recruit Holdings and GEE 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 GEE Group are associated (or correlated) with Recruit Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Recruit Holdings has no effect on the direction of GEE i.e., GEE and Recruit Holdings go up and down completely randomly.
Pair Corralation between GEE and Recruit Holdings
Considering the 90-day investment horizon GEE Group is expected to under-perform the Recruit Holdings. But the stock apears to be less risky and, when comparing its historical volatility, GEE Group is 1.26 times less risky than Recruit Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Recruit Holdings Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,045 in Recruit Holdings Co on September 14, 2024 and sell it today you would earn a total of 4,615 from holding Recruit Holdings Co or generate 151.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GEE Group vs. Recruit Holdings Co
Performance |
| Timeline |
| GEE Group |
| Recruit Holdings |
GEE and Recruit Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEE and Recruit Holdings
The main advantage of trading using opposite GEE and Recruit Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE position performs unexpectedly, Recruit Holdings 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 Recruit Holdings will offset losses from the drop in Recruit Holdings' long position.The idea behind GEE Group and Recruit Holdings Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Recruit Holdings vs. Randstad Holdings NV | Recruit Holdings vs. TechnoPro Holdings | Recruit Holdings vs. GEE Group | Recruit Holdings vs. Labor Smart |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |