Correlation Between Kelly Services and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Kelly Services 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 Kelly Services and ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelly Services B and ManpowerGroup, you can compare the effects of market volatilities on Kelly Services 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 Kelly Services with a short position of ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and ManpowerGroup.
Diversification Opportunities for Kelly Services and ManpowerGroup
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kelly and ManpowerGroup is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services B and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup and Kelly Services 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 Kelly Services B 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 Kelly Services i.e., Kelly Services and ManpowerGroup go up and down completely randomly.
Pair Corralation between Kelly Services and ManpowerGroup
Assuming the 90 days horizon Kelly Services B is expected to generate 1.18 times more return on investment than ManpowerGroup. However, Kelly Services is 1.18 times more volatile than ManpowerGroup. It trades about 0.11 of its potential returns per unit of risk. ManpowerGroup is currently generating about 0.04 per unit of risk. If you would invest 1,585 in Kelly Services B on January 31, 2024 and sell it today you would earn a total of 766.00 from holding Kelly Services B or generate 48.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 84.55% |
Values | Daily Returns |
Kelly Services B vs. ManpowerGroup
Performance |
Timeline |
Kelly Services B |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
ManpowerGroup |
Kelly Services and ManpowerGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kelly Services and ManpowerGroup
The main advantage of trading using opposite Kelly Services and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services 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.Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Kforce Inc | Kelly Services vs. Korn Ferry | Kelly Services vs. Kelly Services A |
ManpowerGroup vs. ExlService Holdings | ManpowerGroup vs. WNS Holdings | ManpowerGroup vs. Gartner | ManpowerGroup 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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