Correlation Between Paycor HCM and Staffing 360

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Can any of the company-specific risk be diversified away by investing in both Paycor HCM and Staffing 360 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 Paycor HCM and Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paycor HCM and Staffing 360 Solutions, you can compare the effects of market volatilities on Paycor HCM and Staffing 360 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 Paycor HCM with a short position of Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paycor HCM and Staffing 360.

Diversification Opportunities for Paycor HCM and Staffing 360

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Paycor and Staffing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Paycor HCM and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions and Paycor HCM 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 Paycor HCM are associated (or correlated) with Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Paycor HCM i.e., Paycor HCM and Staffing 360 go up and down completely randomly.

Pair Corralation between Paycor HCM and Staffing 360

Given the investment horizon of 90 days Paycor HCM is expected to generate 2.13 times less return on investment than Staffing 360. But when comparing it to its historical volatility, Paycor HCM is 7.07 times less risky than Staffing 360. It trades about 0.45 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  180.00  in Staffing 360 Solutions on August 30, 2024 and sell it today you would earn a total of  60.00  from holding Staffing 360 Solutions or generate 33.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.65%
ValuesDaily Returns

Paycor HCM  vs.  Staffing 360 Solutions

 Performance 
       Timeline  
Paycor HCM 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Paycor HCM are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental indicators, Paycor HCM reported solid returns over the last few months and may actually be approaching a breakup point.
Staffing 360 Solutions 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Staffing 360 Solutions are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Staffing 360 reported solid returns over the last few months and may actually be approaching a breakup point.

Paycor HCM and Staffing 360 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Paycor HCM and Staffing 360

The main advantage of trading using opposite Paycor HCM and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paycor HCM position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.
The idea behind Paycor HCM and Staffing 360 Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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