Correlation Between ManpowerGroup and DHI
Can any of the company-specific risk be diversified away by investing in both ManpowerGroup and DHI 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 ManpowerGroup and DHI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ManpowerGroup and DHI Group, you can compare the effects of market volatilities on ManpowerGroup and DHI 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 ManpowerGroup with a short position of DHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ManpowerGroup and DHI.
Diversification Opportunities for ManpowerGroup and DHI
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ManpowerGroup and DHI is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ManpowerGroup and DHI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHI Group and ManpowerGroup 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 ManpowerGroup are associated (or correlated) with DHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHI Group has no effect on the direction of ManpowerGroup i.e., ManpowerGroup and DHI go up and down completely randomly.
Pair Corralation between ManpowerGroup and DHI
Considering the 90-day investment horizon ManpowerGroup is expected to generate 0.42 times more return on investment than DHI. However, ManpowerGroup is 2.35 times less risky than DHI. It trades about -0.01 of its potential returns per unit of risk. DHI Group is currently generating about -0.03 per unit of risk. If you would invest 8,197 in ManpowerGroup on January 25, 2024 and sell it today you would lose (553.00) from holding ManpowerGroup or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ManpowerGroup vs. DHI Group
Performance |
| Timeline |
| ManpowerGroup |
| DHI Group |
ManpowerGroup and DHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ManpowerGroup and DHI
The main advantage of trading using opposite ManpowerGroup and DHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ManpowerGroup position performs unexpectedly, DHI 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 DHI will offset losses from the drop in DHI's long position.| ManpowerGroup vs. Discount Print USA | ManpowerGroup vs. Cass Information Systems | ManpowerGroup vs. Maximus | ManpowerGroup vs. AZZ Incorporated |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |