Correlation Between PageGroup Plc and Cross Country

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

By analyzing existing cross correlation between PageGroup plc and Cross Country Healthcare, you can compare the effects of market volatilities on PageGroup Plc and Cross Country 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 PageGroup Plc with a short position of Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of PageGroup Plc and Cross Country.

Diversification Opportunities for PageGroup Plc and Cross Country

-0.11

Correlation Coefficient

PageGroup Plc  Cross Country

Good diversification

The 3 months correlation between PageGroup and Cross is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PageGroup plc and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare and PageGroup Plc 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 PageGroup plc are associated (or correlated) with Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of PageGroup Plc i.e., PageGroup Plc and Cross Country go up and down completely randomly.

Pair Corralation between PageGroup Plc and Cross Country

Assuming the 90 days horizon PageGroup plc is expected to generate 1.53 times more return on investment than Cross Country. However, PageGroup Plc is 1.53 times more volatile than Cross Country Healthcare. It trades about -0.03 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.24 per unit of risk. If you would invest  414.00  in PageGroup plc on December 27, 2024 and sell it today you would lose (24.00) from holding PageGroup plc or give up 5.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

PageGroup plc  vs.  Cross Country Healthcare

PageGroup plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PageGroup plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PageGroup Plc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Cross Country Healthcare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cross Country Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with PageGroup Plc and Cross Country

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

The idea behind PageGroup plc and Cross Country Healthcare 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 Commodity Directory module to find actively traded commodities issued by global exchanges.