Correlation Between Insperity and GEE
Can any of the company-specific risk be diversified away by investing in both Insperity and GEE 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 Insperity and GEE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insperity and GEE Group, you can compare the effects of market volatilities on Insperity and GEE 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 Insperity with a short position of GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insperity and GEE.
Diversification Opportunities for Insperity and GEE
Weak diversification
The 3 months correlation between Insperity and GEE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Insperity and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group and Insperity 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 Insperity are associated (or correlated) with GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of Insperity i.e., Insperity and GEE go up and down completely randomly.
Pair Corralation between Insperity and GEE
Considering the 90-day investment horizon Insperity is expected to generate 1.09 times more return on investment than GEE. However, Insperity is 1.09 times more volatile than GEE Group. It trades about 0.02 of its potential returns per unit of risk. GEE Group is currently generating about 0.01 per unit of risk. If you would invest 7,877 in Insperity on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Insperity or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insperity vs. GEE Group
Performance |
| Timeline |
| Insperity |
| GEE Group |
Insperity and GEE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insperity and GEE
The main advantage of trading using opposite Insperity and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insperity position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.| Insperity vs. Korn Ferry | Insperity vs. Barrett Business Services | Insperity vs. TrueBlue | Insperity vs. Heidrick Struggles International |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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