Correlation Between Softwareone Holding and Adecco Group
Can any of the company-specific risk be diversified away by investing in both Softwareone Holding and Adecco Group 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 Softwareone Holding and Adecco Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Softwareone Holding and Adecco Group AG, you can compare the effects of market volatilities on Softwareone Holding and Adecco Group 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 Softwareone Holding with a short position of Adecco Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Softwareone Holding and Adecco Group.
Diversification Opportunities for Softwareone Holding and Adecco Group
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Softwareone and Adecco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Softwareone Holding and Adecco Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group AG and Softwareone Holding 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 Softwareone Holding are associated (or correlated) with Adecco Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group AG has no effect on the direction of Softwareone Holding i.e., Softwareone Holding and Adecco Group go up and down completely randomly.
Pair Corralation between Softwareone Holding and Adecco Group
If you would invest 0.00 in Adecco Group AG on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Adecco Group AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
Softwareone Holding vs. Adecco Group AG
Performance |
| Timeline |
| Softwareone Holding |
| Adecco Group AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Softwareone Holding and Adecco Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Softwareone Holding and Adecco Group
The main advantage of trading using opposite Softwareone Holding and Adecco Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Softwareone Holding position performs unexpectedly, Adecco Group 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 Adecco Group will offset losses from the drop in Adecco Group's long position.| Softwareone Holding vs. Logitech International SA | Softwareone Holding vs. VAT Group AG | Softwareone Holding vs. Cembra Money Bank | Softwareone Holding vs. Temenos Group AG |
| Adecco Group vs. Swisscom AG | Adecco Group vs. Swiss Life Holding | Adecco Group vs. Swiss Re AG | Adecco Group vs. ABB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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