Correlation Between Robert Half and Automatic Data
Can any of the company-specific risk be diversified away by investing in both Robert Half and Automatic Data 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 Robert Half and Automatic Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robert Half International and Automatic Data Processing, you can compare the effects of market volatilities on Robert Half and Automatic Data 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 Robert Half with a short position of Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and Automatic Data.
Diversification Opportunities for Robert Half and Automatic Data
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Robert and Automatic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing and Robert Half 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 Robert Half International are associated (or correlated) with Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of Robert Half i.e., Robert Half and Automatic Data go up and down completely randomly.
Pair Corralation between Robert Half and Automatic Data
Considering the 90-day investment horizon Robert Half International is expected to generate 2.0 times more return on investment than Automatic Data. However, Robert Half is 2.0 times more volatile than Automatic Data Processing. It trades about 0.19 of its potential returns per unit of risk. Automatic Data Processing is currently generating about 0.22 per unit of risk. If you would invest 6,865 in Robert Half International on August 28, 2024 and sell it today you would earn a total of 712.00 from holding Robert Half International or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Robert Half International vs. Automatic Data Processing
Performance |
| Timeline |
| Robert Half International |
| Automatic Data Processing |
Robert Half and Automatic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robert Half and Automatic Data
The main advantage of trading using opposite Robert Half and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half position performs unexpectedly, Automatic Data 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 Automatic Data will offset losses from the drop in Automatic Data's long position.| Robert Half vs. Kelly Services A | Robert Half vs. Kforce Inc | Robert Half vs. Korn Ferry | Robert Half vs. TrueBlue |
| Automatic Data vs. ExlService Holdings | Automatic Data vs. WNS Holdings | Automatic Data vs. Gartner | Automatic Data vs. The Hackett Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |