Correlation Between Clear Secure and ManpowerGroup

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

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

Diversification Opportunities for Clear Secure and ManpowerGroup

0.51

Correlation Coefficient

Clear Secure  ManpowerGroup

Very weak diversification

The 3 months correlation between Clear and ManpowerGroup is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup and Clear Secure 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 Clear Secure are associated (or correlated) with ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of Clear Secure i.e., Clear Secure and ManpowerGroup go up and down completely randomly.

Pair Corralation between Clear Secure and ManpowerGroup

Considering the 90-day investment horizon Clear Secure is expected to generate 0.8 times more return on investment than ManpowerGroup. However, Clear Secure is 1.25 times less risky than ManpowerGroup. It trades about 0.09 of its potential returns per unit of risk. ManpowerGroup is currently generating about 0.03 per unit of risk. If you would invest  2,605  in Clear Secure on May 6, 2025 and sell it today you would earn a total of  279.00  from holding Clear Secure or generate 10.71% return on investment over 90 days.

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

Clear Secure  vs.  ManpowerGroup

Clear Secure

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Secure are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Clear Secure may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ManpowerGroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ManpowerGroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, ManpowerGroup is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Clear Secure and ManpowerGroup

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

The idea behind Clear Secure and ManpowerGroup 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.

Check out your portfolio center.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.