Correlation Between Staffing 360 and Kforce
Can any of the company-specific risk be diversified away by investing in both Staffing 360 and Kforce 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 Kforce 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 Kforce Inc, you can compare the effects of market volatilities on Staffing 360 and Kforce 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 Kforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staffing 360 and Kforce.
Diversification Opportunities for Staffing 360 and Kforce
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Staffing and Kforce is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Staffing 360 Solutions and Kforce Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kforce Inc 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 Kforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kforce Inc has no effect on the direction of Staffing 360 i.e., Staffing 360 and Kforce go up and down completely randomly.
Pair Corralation between Staffing 360 and Kforce
Given the investment horizon of 90 days Staffing 360 Solutions is expected to generate 10.07 times more return on investment than Kforce. However, Staffing 360 is 10.07 times more volatile than Kforce Inc. It trades about 0.04 of its potential returns per unit of risk. Kforce Inc is currently generating about 0.0 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staffing 360 Solutions vs. Kforce Inc
Performance |
| Timeline |
| Staffing 360 Solutions |
| Kforce Inc |
Staffing 360 and Kforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staffing 360 and Kforce
The main advantage of trading using opposite Staffing 360 and Kforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staffing 360 position performs unexpectedly, Kforce 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 Kforce will offset losses from the drop in Kforce's long position.| Staffing 360 vs. Kelly Services A | Staffing 360 vs. Mastech Holdings | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Hudson Global |
| Kforce vs. Discount Print USA | Kforce vs. Cass Information Systems | Kforce vs. Civeo Corp | Kforce vs. Network 1 Technologies |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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