Correlation Between Kelly Services and Barrett Business
Can any of the company-specific risk be diversified away by investing in both Kelly Services and Barrett Business 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 Barrett Business 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 Barrett Business Services, you can compare the effects of market volatilities on Kelly Services and Barrett Business 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 Barrett Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and Barrett Business.
Diversification Opportunities for Kelly Services and Barrett Business
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kelly and Barrett is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and Barrett Business Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrett Business Services 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 Barrett Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrett Business Services has no effect on the direction of Kelly Services i.e., Kelly Services and Barrett Business go up and down completely randomly.
Pair Corralation between Kelly Services and Barrett Business
Assuming the 90 days horizon Kelly Services A is expected to under-perform the Barrett Business. In addition to that, Kelly Services is 1.54 times more volatile than Barrett Business Services. It trades about -0.01 of its total potential returns per unit of risk. Barrett Business Services is currently generating about 0.1 per unit of volatility. If you would invest 2,351 in Barrett Business Services on November 2, 2024 and sell it today you would earn a total of 2,006 from holding Barrett Business Services or generate 85.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. Barrett Business Services
Performance |
| Timeline |
| Kelly Services A |
| Barrett Business Services |
Kelly Services and Barrett Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and Barrett Business
The main advantage of trading using opposite Kelly Services and Barrett Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services position performs unexpectedly, Barrett Business 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 Barrett Business will offset losses from the drop in Barrett Business' long position.| Kelly Services vs. Heidrick Struggles International | Kelly Services vs. ManpowerGroup | Kelly Services vs. Korn Ferry | Kelly Services vs. Hudson Global |
| Barrett Business vs. Korn Ferry | Barrett Business vs. Kelly Services A | Barrett Business vs. Kforce Inc | Barrett Business vs. Hudson Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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