Correlation Between Kelly Services and Hudson Global

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

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

Diversification Opportunities for Kelly Services and Hudson Global

0.0

Correlation Coefficient

Kelly Services  Hudson Global

Pay attention - limited upside

The 3 months correlation between Kelly and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global 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 A 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 Kelly Services i.e., Kelly Services and Hudson Global go up and down completely randomly.

Pair Corralation between Kelly Services and Hudson Global

Assuming the 90 days horizon Kelly Services A is expected to under-perform the Hudson Global. But the stock apears to be less risky and, when comparing its historical volatility, Kelly Services A is 25.74 times less risky than Hudson Global. The stock trades about -0.06 of its potential returns per unit of risk. The Hudson Global is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,792  in Hudson Global on May 6, 2025 and sell it today you would lose (862.00) from holding Hudson Global or give up 48.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.59%
Values	Daily Returns

Kelly Services A  vs.  Hudson Global

Kelly Services A

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kelly Services A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Kelly Services may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Hudson Global

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Kelly Services and Hudson Global

The main advantage of trading using opposite Kelly Services and Hudson Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services 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 Kelly Services A 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.