Correlation Between Robert Half and Hudson Global

Can any of the company-specific risk be diversified away by investing in both Robert Half and Hudson Global 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 Robert Half and Hudson Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Robert Half International and Hudson Global, you can compare the effects of market volatilities on Robert Half and Hudson Global 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 Robert Half with a short position of Hudson Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and Hudson Global.

Diversification Opportunities for Robert Half and Hudson Global

-0.62

Correlation Coefficient

Robert Half  Hudson Global

Excellent diversification

The 3 months correlation between Robert and Hudson is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global and Robert Half 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 Robert Half International are associated (or correlated) with Hudson Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Global has no effect on the direction of Robert Half i.e., Robert Half and Hudson Global go up and down completely randomly.

Pair Corralation between Robert Half and Hudson Global

Considering the 90-day investment horizon Robert Half International is expected to under-perform the Hudson Global. But the stock apears to be less risky and, when comparing its historical volatility, Robert Half International is 1.76 times less risky than Hudson Global. The stock trades about -0.28 of its potential returns per unit of risk. The Hudson Global is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,427  in Hudson Global on February 1, 2024 and sell it today you would earn a total of  223.00  from holding Hudson Global or generate 15.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Robert Half International  vs.  Hudson Global

Robert Half International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robert Half International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Hudson Global

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hudson Global are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Hudson Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robert Half and Hudson Global

The main advantage of trading using opposite Robert Half and Hudson Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half position performs unexpectedly, Hudson Global 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 Hudson Global will offset losses from the drop in Hudson Global's long position.

The idea behind Robert Half International and Hudson Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.