Correlation Between RCRT Old and Adecco
Can any of the company-specific risk be diversified away by investing in both RCRT Old and Adecco 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 RCRT Old and Adecco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCRT Old and Adecco Group, you can compare the effects of market volatilities on RCRT Old and Adecco 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 RCRT Old with a short position of Adecco. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCRT Old and Adecco.
Diversification Opportunities for RCRT Old and Adecco
Excellent diversification
The 3 months correlation between RCRT and Adecco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding RCRT Old and Adecco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group and RCRT Old 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 RCRT Old are associated (or correlated) with Adecco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group has no effect on the direction of RCRT Old i.e., RCRT Old and Adecco go up and down completely randomly.
Pair Corralation between RCRT Old and Adecco
Given the investment horizon of 90 days RCRT Old is expected to generate 4.23 times more return on investment than Adecco. However, RCRT Old is 4.23 times more volatile than Adecco Group. It trades about 0.09 of its potential returns per unit of risk. Adecco Group is currently generating about -0.11 per unit of risk. If you would invest 140.00 in RCRT Old on November 4, 2024 and sell it today you would earn a total of 134.00 from holding RCRT Old or generate 95.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.99% |
| Values | Daily Returns |
RCRT Old vs. Adecco Group
Performance |
| Timeline |
| RCRT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adecco Group |
RCRT Old and Adecco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCRT Old and Adecco
The main advantage of trading using opposite RCRT Old and Adecco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCRT Old position performs unexpectedly, Adecco 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 Adecco will offset losses from the drop in Adecco's long position.| RCRT Old vs. The Caldwell Partners | RCRT Old vs. Hire Technologies | RCRT Old vs. Trucept | RCRT Old vs. Randstad Holdings NV |
| Adecco vs. ManpowerGroup | Adecco vs. Robert Half International | Adecco vs. Hire Technologies | Adecco vs. The Caldwell Partners |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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