Correlation Between Kforce and RecruiterCom
Can any of the company-specific risk be diversified away by investing in both Kforce and RecruiterCom 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 RecruiterCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kforce Inc and RecruiterCom Group, you can compare the effects of market volatilities on Kforce and RecruiterCom 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 RecruiterCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kforce and RecruiterCom.
Diversification Opportunities for Kforce and RecruiterCom
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kforce and RecruiterCom is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kforce Inc and RecruiterCom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RecruiterCom Group 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 RecruiterCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RecruiterCom Group has no effect on the direction of Kforce i.e., Kforce and RecruiterCom go up and down completely randomly.
Pair Corralation between Kforce and RecruiterCom
Given the investment horizon of 90 days Kforce Inc is expected to under-perform the RecruiterCom. But the stock apears to be less risky and, when comparing its historical volatility, Kforce Inc is 3.47 times less risky than RecruiterCom. The stock trades about 0.0 of its potential returns per unit of risk. The RecruiterCom Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 169.00 in RecruiterCom Group on September 1, 2024 and sell it today you would earn a total of 105.00 from holding RecruiterCom Group or generate 62.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Kforce Inc vs. RecruiterCom Group
Performance |
| Timeline |
| Kforce Inc |
| RecruiterCom Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Kforce and RecruiterCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kforce and RecruiterCom
The main advantage of trading using opposite Kforce and RecruiterCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kforce position performs unexpectedly, RecruiterCom 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 RecruiterCom will offset losses from the drop in RecruiterCom's long position.| Kforce vs. Discount Print USA | Kforce vs. Cass Information Systems | Kforce vs. Civeo Corp | Kforce vs. Network 1 Technologies |
| RecruiterCom vs. The Caldwell Partners | RecruiterCom vs. Hire Technologies | RecruiterCom vs. Trucept | RecruiterCom vs. Randstad Holdings NV |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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