Correlation Between Kelly Services and ASGN
Can any of the company-specific risk be diversified away by investing in both Kelly 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 Kelly Services and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelly Services A and ASGN Inc, you can compare the effects of market volatilities on Kelly 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 Kelly Services with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and ASGN.
Diversification Opportunities for Kelly Services and ASGN
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kelly and ASGN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Kelly 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 Kelly Services A 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 Kelly Services i.e., Kelly Services and ASGN go up and down completely randomly.
Pair Corralation between Kelly Services and ASGN
Assuming the 90 days horizon Kelly Services A is expected to under-perform the ASGN. In addition to that, Kelly Services is 1.21 times more volatile than ASGN Inc. It trades about -0.05 of its total potential returns per unit of risk. ASGN Inc is currently generating about 0.01 per unit of volatility. If you would invest 9,282 in ASGN Inc on August 28, 2024 and sell it today you would lose (148.00) from holding ASGN Inc or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. ASGN Inc
Performance |
| Timeline |
| Kelly Services A |
| ASGN Inc |
Kelly Services and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and ASGN
The main advantage of trading using opposite Kelly Services and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly 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.| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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