Correlation Between Hudson Technologies and ASGN

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

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

Diversification Opportunities for Hudson Technologies and ASGN

-0.41

Correlation Coefficient

Hudson Technologies  ASGN

Very good diversification

The 3 months correlation between Hudson and ASGN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and ASGN go up and down completely randomly.

Pair Corralation between Hudson Technologies and ASGN

Given the investment horizon of 90 days Hudson Technologies is expected to generate 1.23 times more return on investment than ASGN. However, Hudson Technologies is 1.23 times more volatile than ASGN Inc. It trades about 0.2 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.03 per unit of risk. If you would invest  655.00  in Hudson Technologies on May 5, 2025 and sell it today you would earn a total of  300.00  from holding Hudson Technologies or generate 45.8% return on investment over 90 days.

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

Hudson Technologies  vs.  ASGN Inc

Hudson Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hudson Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Hudson Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ASGN is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hudson Technologies and ASGN

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

The idea behind Hudson Technologies and ASGN Inc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.