Correlation Between Heidrick Struggles and Argan

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

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

Diversification Opportunities for Heidrick Struggles and Argan

0.65

Correlation Coefficient

Heidrick Struggles  Argan

Poor diversification

The 3 months correlation between Heidrick and Argan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Heidrick Struggles Internation and Argan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argan Inc and Heidrick Struggles 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 Heidrick Struggles International are associated (or correlated) with Argan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argan Inc has no effect on the direction of Heidrick Struggles i.e., Heidrick Struggles and Argan go up and down completely randomly.

Pair Corralation between Heidrick Struggles and Argan

Given the investment horizon of 90 days Heidrick Struggles is expected to generate 3.31 times less return on investment than Argan. But when comparing it to its historical volatility, Heidrick Struggles International is 2.25 times less risky than Argan. It trades about 0.11 of its potential returns per unit of risk. Argan Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  16,508  in Argan Inc on May 4, 2025 and sell it today you would earn a total of  6,019  from holding Argan Inc or generate 36.46% return on investment over 90 days.

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

Heidrick Struggles Internation  vs.  Argan Inc

Heidrick Struggles

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Heidrick Struggles International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Heidrick Struggles may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Argan Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Argan Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Argan showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Heidrick Struggles and Argan

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

The idea behind Heidrick Struggles International and Argan 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.