Correlation Between SPX Corp and ASGN

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

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

Diversification Opportunities for SPX Corp and ASGN

-0.04

Correlation Coefficient

SPX Corp  ASGN

Good diversification

The 3 months correlation between SPX and ASGN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SPX Corp and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and SPX Corp 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 SPX Corp 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 SPX Corp i.e., SPX Corp and ASGN go up and down completely randomly.

Pair Corralation between SPX Corp and ASGN

Given the investment horizon of 90 days SPX Corp is expected to generate 0.61 times more return on investment than ASGN. However, SPX Corp is 1.65 times less risky than ASGN. It trades about 0.03 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.04 per unit of risk. If you would invest  19,636  in SPX Corp on August 1, 2025 and sell it today you would earn a total of  364.00  from holding SPX Corp or generate 1.85% return on investment over 90 days.

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

SPX Corp  vs.  ASGN Inc

SPX Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SPX Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SPX Corp is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

ASGN Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with SPX Corp and ASGN

The main advantage of trading using opposite SPX Corp and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPX Corp 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 SPX Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.