Correlation Between Kforce and BG Staffing
Can any of the company-specific risk be diversified away by investing in both Kforce and BG Staffing 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 Kforce and BG Staffing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kforce Inc and BG Staffing, you can compare the effects of market volatilities on Kforce and BG Staffing 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 Kforce with a short position of BG Staffing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kforce and BG Staffing.
Diversification Opportunities for Kforce and BG Staffing
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kforce and BGSF is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kforce Inc and BG Staffing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Staffing and Kforce 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 Kforce Inc are associated (or correlated) with BG Staffing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Staffing has no effect on the direction of Kforce i.e., Kforce and BG Staffing go up and down completely randomly.
Pair Corralation between Kforce and BG Staffing
Given the investment horizon of 90 days Kforce Inc is expected to generate 0.64 times more return on investment than BG Staffing. However, Kforce Inc is 1.56 times less risky than BG Staffing. It trades about 0.01 of its potential returns per unit of risk. BG Staffing is currently generating about -0.07 per unit of risk. If you would invest 5,698 in Kforce Inc on November 2, 2024 and sell it today you would lose (87.00) from holding Kforce Inc or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kforce Inc vs. BG Staffing
Performance |
| Timeline |
| Kforce Inc |
| BG Staffing |
Kforce and BG Staffing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kforce and BG Staffing
The main advantage of trading using opposite Kforce and BG Staffing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kforce position performs unexpectedly, BG Staffing 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 BG Staffing will offset losses from the drop in BG Staffing's long position.| Kforce vs. Heidrick Struggles International | Kforce vs. ManpowerGroup | Kforce vs. Korn Ferry | Kforce vs. Hudson Global |
| BG Staffing vs. Kelly Services A | BG Staffing vs. Korn Ferry | BG Staffing vs. Heidrick Struggles International | BG Staffing 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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