Correlation Between ManpowerGroup and DLH Holdings
Can any of the company-specific risk be diversified away by investing in both ManpowerGroup and DLH Holdings 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 DLH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ManpowerGroup and DLH Holdings Corp, you can compare the effects of market volatilities on ManpowerGroup and DLH Holdings 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 DLH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ManpowerGroup and DLH Holdings.
Diversification Opportunities for ManpowerGroup and DLH Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ManpowerGroup and DLH is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ManpowerGroup and DLH Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DLH Holdings Corp 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 DLH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DLH Holdings Corp has no effect on the direction of ManpowerGroup i.e., ManpowerGroup and DLH Holdings go up and down completely randomly.
Pair Corralation between ManpowerGroup and DLH Holdings
Considering the 90-day investment horizon ManpowerGroup is expected to generate 0.68 times more return on investment than DLH Holdings. However, ManpowerGroup is 1.47 times less risky than DLH Holdings. It trades about 0.0 of its potential returns per unit of risk. DLH Holdings Corp is currently generating about -0.01 per unit of risk. If you would invest 8,494 in ManpowerGroup on January 20, 2024 and sell it today you would lose (1,010) from holding ManpowerGroup or give up 11.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ManpowerGroup vs. DLH Holdings Corp
Performance |
| Timeline |
| ManpowerGroup |
| DLH Holdings Corp |
ManpowerGroup and DLH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ManpowerGroup and DLH Holdings
The main advantage of trading using opposite ManpowerGroup and DLH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ManpowerGroup position performs unexpectedly, DLH Holdings 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 DLH Holdings will offset losses from the drop in DLH Holdings' long position.| ManpowerGroup vs. ExlService Holdings | ManpowerGroup vs. WNS Holdings | ManpowerGroup vs. Gartner | ManpowerGroup vs. The Hackett Group |
| DLH Holdings vs. ExlService Holdings | DLH Holdings vs. WNS Holdings | DLH Holdings vs. Gartner | DLH Holdings vs. The Hackett Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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