Correlation Between Robert Half and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Robert Half 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 Robert Half and ManpowerGroup 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 ManpowerGroup, you can compare the effects of market volatilities on Robert Half 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 Robert Half with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and ManpowerGroup.
Diversification Opportunities for Robert Half and ManpowerGroup
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Robert and ManpowerGroup is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 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 Robert Half i.e., Robert Half and ManpowerGroup go up and down completely randomly.
Pair Corralation between Robert Half and ManpowerGroup
Assuming the 90 days horizon Robert Half International is expected to generate 1.06 times more return on investment than ManpowerGroup. However, Robert Half is 1.06 times more volatile than ManpowerGroup. It trades about 0.0 of its potential returns per unit of risk. ManpowerGroup is currently generating about -0.02 per unit of risk. If you would invest 7,403 in Robert Half International on September 4, 2024 and sell it today you would lose (353.00) from holding Robert Half International or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Robert Half International vs. ManpowerGroup
Performance |
| Timeline |
| Robert Half International |
| ManpowerGroup |
Robert Half and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robert Half and ManpowerGroup
The main advantage of trading using opposite Robert Half and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half 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.| Robert Half vs. QURATE RETAIL INC | Robert Half vs. Gruppo Mutuionline SpA | Robert Half vs. Caseys General Stores | Robert Half vs. CarsalesCom |
| ManpowerGroup vs. TROPHY GAMES DEV | ManpowerGroup vs. PENN NATL GAMING | ManpowerGroup vs. Townsquare Media | ManpowerGroup vs. Universal Entertainment |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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