Correlation Between Staffing 360 and Caldwell Partners
Can any of the company-specific risk be diversified away by investing in both Staffing 360 and Caldwell Partners 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 Staffing 360 and Caldwell Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staffing 360 Solutions and The Caldwell Partners, you can compare the effects of market volatilities on Staffing 360 and Caldwell Partners 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 Staffing 360 with a short position of Caldwell Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staffing 360 and Caldwell Partners.
Diversification Opportunities for Staffing 360 and Caldwell Partners
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Staffing and Caldwell is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Staffing 360 Solutions and The Caldwell Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldwell Partners and Staffing 360 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 Staffing 360 Solutions are associated (or correlated) with Caldwell Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldwell Partners has no effect on the direction of Staffing 360 i.e., Staffing 360 and Caldwell Partners go up and down completely randomly.
Pair Corralation between Staffing 360 and Caldwell Partners
Given the investment horizon of 90 days Staffing 360 Solutions is expected to generate 2.13 times more return on investment than Caldwell Partners. However, Staffing 360 is 2.13 times more volatile than The Caldwell Partners. It trades about 0.04 of its potential returns per unit of risk. The Caldwell Partners is currently generating about 0.06 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staffing 360 Solutions vs. The Caldwell Partners
Performance |
| Timeline |
| Staffing 360 Solutions |
| Caldwell Partners |
Staffing 360 and Caldwell Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staffing 360 and Caldwell Partners
The main advantage of trading using opposite Staffing 360 and Caldwell Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staffing 360 position performs unexpectedly, Caldwell Partners 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 Caldwell Partners will offset losses from the drop in Caldwell Partners' long position.| Staffing 360 vs. Kelly Services A | Staffing 360 vs. Mastech Holdings | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Hudson Global |
| Caldwell Partners vs. Trucept | Caldwell Partners vs. Randstad Holdings NV | Caldwell Partners vs. Futuris Company | Caldwell Partners vs. TrueBlue |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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