Correlation Between Hirequest and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Hirequest 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 Hirequest and ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hirequest and ManpowerGroup, you can compare the effects of market volatilities on Hirequest 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 Hirequest with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hirequest and ManpowerGroup.
Diversification Opportunities for Hirequest and ManpowerGroup
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hirequest and ManpowerGroup is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hirequest and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup and Hirequest 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 Hirequest 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 Hirequest i.e., Hirequest and ManpowerGroup go up and down completely randomly.
Pair Corralation between Hirequest and ManpowerGroup
Considering the 90-day investment horizon Hirequest is expected to generate 1.25 times more return on investment than ManpowerGroup. However, Hirequest is 1.25 times more volatile than ManpowerGroup. It trades about 0.02 of its potential returns per unit of risk. ManpowerGroup is currently generating about -0.1 per unit of risk. If you would invest 1,208 in Hirequest on January 19, 2024 and sell it today you would earn a total of 3.00 from holding Hirequest or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hirequest vs. ManpowerGroup
Performance |
| Timeline |
| Hirequest |
| ManpowerGroup |
Hirequest and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hirequest and ManpowerGroup
The main advantage of trading using opposite Hirequest and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hirequest 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.| Hirequest vs. Kforce Inc | Hirequest vs. Heidrick Struggles International | Hirequest vs. Hudson Global | Hirequest vs. Kelly Services A |
| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. Heidrick Struggles International | ManpowerGroup vs. Korn Ferry | ManpowerGroup vs. Hudson Global |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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