Correlation Between StarTek and ASGN
Can any of the company-specific risk be diversified away by investing in both StarTek and ASGN 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 StarTek and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StarTek and ASGN Inc, you can compare the effects of market volatilities on StarTek and ASGN 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 StarTek with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarTek and ASGN.
Diversification Opportunities for StarTek and ASGN
Very good diversification
The 3 months correlation between StarTek and ASGN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding StarTek and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and StarTek 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 StarTek are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of StarTek i.e., StarTek and ASGN go up and down completely randomly.
Pair Corralation between StarTek and ASGN
If you would invest 322.00 in StarTek on August 24, 2024 and sell it today you would earn a total of 0.00 from holding StarTek or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
StarTek vs. ASGN Inc
Performance |
| Timeline |
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ASGN Inc |
StarTek and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarTek and ASGN
The main advantage of trading using opposite StarTek and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarTek position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.The idea behind StarTek and ASGN Inc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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