Correlation Between RecruiterCom and Staffing 360
Can any of the company-specific risk be diversified away by investing in both RecruiterCom 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 RecruiterCom and Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RecruiterCom Group and Staffing 360 Solutions, you can compare the effects of market volatilities on RecruiterCom 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 RecruiterCom with a short position of Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of RecruiterCom and Staffing 360.
Diversification Opportunities for RecruiterCom and Staffing 360
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between RecruiterCom and Staffing is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding RecruiterCom Group 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 RecruiterCom 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 RecruiterCom Group 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 RecruiterCom i.e., RecruiterCom and Staffing 360 go up and down completely randomly.
Pair Corralation between RecruiterCom and Staffing 360
Given the investment horizon of 90 days RecruiterCom is expected to generate 1.03 times less return on investment than Staffing 360. But when comparing it to its historical volatility, RecruiterCom Group is 2.9 times less risky than Staffing 360. It trades about 0.12 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Staffing 360 Solutions on September 1, 2024 and sell it today you would lose (82.00) from holding Staffing 360 Solutions or give up 24.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
RecruiterCom Group vs. Staffing 360 Solutions
Performance |
| Timeline |
| RecruiterCom Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Staffing 360 Solutions |
RecruiterCom and Staffing 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RecruiterCom and Staffing 360
The main advantage of trading using opposite RecruiterCom and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RecruiterCom 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.| RecruiterCom vs. The Caldwell Partners | RecruiterCom vs. Hire Technologies | RecruiterCom vs. Trucept | RecruiterCom vs. Randstad Holdings NV |
| Staffing 360 vs. Kelly Services A | Staffing 360 vs. Mastech Holdings | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Hudson Global |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |