Correlation Between ASGN and Deveron Corp

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

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

Diversification Opportunities for ASGN and Deveron Corp

-0.48

Correlation Coefficient

ASGN  Deveron Corp

Very good diversification

The 3 months correlation between ASGN and Deveron is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Deveron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deveron Corp and ASGN 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 ASGN Inc are associated (or correlated) with Deveron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deveron Corp has no effect on the direction of ASGN i.e., ASGN and Deveron Corp go up and down completely randomly.

Pair Corralation between ASGN and Deveron Corp

Given the investment horizon of 90 days ASGN Inc is expected to under-perform the Deveron Corp. In addition to that, ASGN is 1.4 times more volatile than Deveron Corp. It trades about -0.2 of its total potential returns per unit of risk. Deveron Corp is currently generating about 0.13 per unit of volatility. If you would invest  0.08  in Deveron Corp on December 26, 2024 and sell it today you would earn a total of  0.01  from holding Deveron Corp or generate 12.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

ASGN Inc  vs.  Deveron Corp

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Deveron Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deveron Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Deveron Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ASGN and Deveron Corp

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

The idea behind ASGN Inc and Deveron Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.