Correlation Between ASGN and Quisitive Technology

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

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

Diversification Opportunities for ASGN and Quisitive Technology

0.58

Correlation Coefficient

ASGN  Quisitive Technology

Very weak diversification

The 3 months correlation between ASGN and Quisitive is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Quisitive Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quisitive Technology 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 Quisitive Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quisitive Technology has no effect on the direction of ASGN i.e., ASGN and Quisitive Technology go up and down completely randomly.

Pair Corralation between ASGN and Quisitive Technology

Given the investment horizon of 90 days ASGN is expected to generate 19.9 times less return on investment than Quisitive Technology. But when comparing it to its historical volatility, ASGN Inc is 2.29 times less risky than Quisitive Technology. It trades about 0.0 of its potential returns per unit of risk. Quisitive Technology Solutions is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Quisitive Technology Solutions on September 15, 2024 and sell it today you would earn a total of  2.00  from holding Quisitive Technology Solutions or generate 8.7% return on investment over 90 days.

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

ASGN Inc  vs.  Quisitive Technology Solutions

ASGN Inc

Risk-Adjusted Performance

0 of 100

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 very healthy technical and fundamental indicators, ASGN is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Quisitive Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ASGN and Quisitive Technology

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

The idea behind ASGN Inc and Quisitive Technology Solutions 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.