Correlation Between Kelly Services and Hirequest
Can any of the company-specific risk be diversified away by investing in both Kelly Services and Hirequest 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 Hirequest 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 Hirequest, you can compare the effects of market volatilities on Kelly Services and Hirequest 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 Hirequest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and Hirequest.
Diversification Opportunities for Kelly Services and Hirequest
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kelly and Hirequest is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and Hirequest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hirequest 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 Hirequest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hirequest has no effect on the direction of Kelly Services i.e., Kelly Services and Hirequest go up and down completely randomly.
Pair Corralation between Kelly Services and Hirequest
Assuming the 90 days horizon Kelly Services A is expected to generate 0.64 times more return on investment than Hirequest. However, Kelly Services A is 1.55 times less risky than Hirequest. It trades about -0.01 of its potential returns per unit of risk. Hirequest is currently generating about -0.02 per unit of risk. If you would invest 1,688 in Kelly Services A on August 28, 2024 and sell it today you would lose (203.00) from holding Kelly Services A or give up 12.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. Hirequest
Performance |
| Timeline |
| Kelly Services A |
| Hirequest |
Kelly Services and Hirequest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and Hirequest
The main advantage of trading using opposite Kelly Services and Hirequest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services position performs unexpectedly, Hirequest 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 Hirequest will offset losses from the drop in Hirequest's long position.| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
| Hirequest vs. ExlService Holdings | Hirequest vs. WNS Holdings | Hirequest vs. Gartner | Hirequest vs. The Hackett Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |