Correlation Between ASGN Incorporated and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both ASGN Incorporated and ManpowerGroup 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 ASGN Incorporated and ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASGN Incorporated and ManpowerGroup, you can compare the effects of market volatilities on ASGN Incorporated and ManpowerGroup 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 ASGN Incorporated with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN Incorporated and ManpowerGroup.
Diversification Opportunities for ASGN Incorporated and ManpowerGroup
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASGN and ManpowerGroup is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Incorporated and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup and ASGN Incorporated 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 ASGN Incorporated are associated (or correlated) with ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of ASGN Incorporated i.e., ASGN Incorporated and ManpowerGroup go up and down completely randomly.
Pair Corralation between ASGN Incorporated and ManpowerGroup
Assuming the 90 days horizon ASGN Incorporated is expected to generate 1.13 times more return on investment than ManpowerGroup. However, ASGN Incorporated is 1.13 times more volatile than ManpowerGroup. It trades about 0.01 of its potential returns per unit of risk. ManpowerGroup is currently generating about -0.02 per unit of risk. If you would invest 8,500 in ASGN Incorporated on November 2, 2024 and sell it today you would lose (50.00) from holding ASGN Incorporated or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASGN Incorporated vs. ManpowerGroup
Performance |
| Timeline |
| ASGN Incorporated |
| ManpowerGroup |
ASGN Incorporated and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASGN Incorporated and ManpowerGroup
The main advantage of trading using opposite ASGN Incorporated and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN Incorporated position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| ASGN Incorporated vs. Canadian Utilities Limited | ASGN Incorporated vs. EVS Broadcast Equipment | ASGN Incorporated vs. SAFEROADS HLDGS | ASGN Incorporated vs. CarsalesCom |
| ManpowerGroup vs. GRENKELEASING Dusseldorf | ManpowerGroup vs. UNITED RENTALS | ManpowerGroup vs. Virtus Investment Partners | ManpowerGroup vs. Keck Seng Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
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