Correlation Between Kelly Services and Caldwell Partners
Can any of the company-specific risk be diversified away by investing in both Kelly Services and Caldwell Partners 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 Caldwell Partners 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 The Caldwell Partners, you can compare the effects of market volatilities on Kelly Services and Caldwell Partners 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 Caldwell Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and Caldwell Partners.
Diversification Opportunities for Kelly Services and Caldwell Partners
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kelly and Caldwell is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and The Caldwell Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldwell Partners 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 Caldwell Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldwell Partners has no effect on the direction of Kelly Services i.e., Kelly Services and Caldwell Partners go up and down completely randomly.
Pair Corralation between Kelly Services and Caldwell Partners
Assuming the 90 days horizon Kelly Services A is expected to under-perform the Caldwell Partners. But the stock apears to be less risky and, when comparing its historical volatility, Kelly Services A is 2.76 times less risky than Caldwell Partners. The stock trades about -0.05 of its potential returns per unit of risk. The The Caldwell Partners is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 52.00 in The Caldwell Partners on August 29, 2024 and sell it today you would earn a total of 30.00 from holding The Caldwell Partners or generate 57.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. The Caldwell Partners
Performance |
| Timeline |
| Kelly Services A |
| Caldwell Partners |
Kelly Services and Caldwell Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and Caldwell Partners
The main advantage of trading using opposite Kelly Services and Caldwell Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services position performs unexpectedly, Caldwell Partners 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 Caldwell Partners will offset losses from the drop in Caldwell Partners' long position.| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
| Caldwell Partners vs. Deere Company | Caldwell Partners vs. Columbus McKinnon | Caldwell Partners vs. Hyster Yale Materials Handling | Caldwell Partners vs. Manitowoc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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