Correlation Between Adecco and Hire Technologies

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

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

Diversification Opportunities for Adecco and Hire Technologies

0.0

Correlation Coefficient

Adecco  Hire Technologies

Pay attention - limited upside

The 3 months correlation between Adecco and Hire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group and Hire Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hire Technologies and Adecco 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 Adecco Group are associated (or correlated) with Hire Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hire Technologies has no effect on the direction of Adecco i.e., Adecco and Hire Technologies go up and down completely randomly.

Pair Corralation between Adecco and Hire Technologies

Assuming the 90 days horizon Adecco Group is expected to under-perform the Hire Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Adecco Group is 17.43 times less risky than Hire Technologies. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Hire Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.40  in Hire Technologies on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Hire Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Adecco Group  vs.  Hire Technologies

Adecco Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adecco Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Hire Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hire Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Hire Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adecco and Hire Technologies

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

The idea behind Adecco Group and Hire Technologies 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.