Correlation Between Kforce and Click Holdings

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

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

Diversification Opportunities for Kforce and Click Holdings

0.61

Correlation Coefficient

Kforce  Click Holdings

Poor diversification

The 3 months correlation between Kforce and Click is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kforce Inc and Click Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Click Holdings and Kforce 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 Kforce Inc are associated (or correlated) with Click Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Click Holdings has no effect on the direction of Kforce i.e., Kforce and Click Holdings go up and down completely randomly.

Pair Corralation between Kforce and Click Holdings

Given the investment horizon of 90 days Kforce Inc is expected to generate 0.4 times more return on investment than Click Holdings. However, Kforce Inc is 2.5 times less risky than Click Holdings. It trades about 0.0 of its potential returns per unit of risk. Click Holdings Limited is currently generating about -0.01 per unit of risk. If you would invest  3,160  in Kforce Inc on August 12, 2025 and sell it today you would lose (150.00) from holding Kforce Inc or give up 4.75% of portfolio value over 90 days.

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

Kforce Inc  vs.  Click Holdings Limited

Kforce Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Kforce Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Kforce is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Click Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Click Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Click Holdings is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Kforce and Click Holdings

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

The idea behind Kforce Inc and Click Holdings Limited 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.