Correlation Between ASGN and Nomura Research

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

By analyzing existing cross correlation between ASGN Inc and Nomura Research Institute, you can compare the effects of market volatilities on ASGN and Nomura Research 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 Nomura Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Nomura Research.

Diversification Opportunities for ASGN and Nomura Research

-0.61

Correlation Coefficient

ASGN  Nomura Research

Excellent diversification

The 3 months correlation between ASGN and Nomura is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Nomura Research Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Research Institute 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 Nomura Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Research Institute has no effect on the direction of ASGN i.e., ASGN and Nomura Research go up and down completely randomly.

Pair Corralation between ASGN and Nomura Research

Given the investment horizon of 90 days ASGN Inc is expected to under-perform the Nomura Research. In addition to that, ASGN is 1.37 times more volatile than Nomura Research Institute. It trades about -0.19 of its total potential returns per unit of risk. Nomura Research Institute is currently generating about 0.1 per unit of volatility. If you would invest  2,965  in Nomura Research Institute on December 27, 2024 and sell it today you would earn a total of  271.00  from holding Nomura Research Institute or generate 9.14% return on investment over 90 days.

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

ASGN Inc  vs.  Nomura Research Institute

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.

Nomura Research Institute

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nomura Research Institute are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Nomura Research may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ASGN and Nomura Research

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

The idea behind ASGN Inc and Nomura Research Institute 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.