Correlation Between ASGN and Unisys

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

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

Diversification Opportunities for ASGN and Unisys

-0.03

Correlation Coefficient

ASGN  Unisys

Good diversification

The 3 months correlation between ASGN and Unisys is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Unisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisys 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 Unisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisys has no effect on the direction of ASGN i.e., ASGN and Unisys go up and down completely randomly.

Pair Corralation between ASGN and Unisys

Given the investment horizon of 90 days ASGN is expected to generate 64.86 times less return on investment than Unisys. But when comparing it to its historical volatility, ASGN Inc is 2.36 times less risky than Unisys. It trades about 0.0 of its potential returns per unit of risk. Unisys is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  414.00  in Unisys on September 28, 2024 and sell it today you would earn a total of  228.00  from holding Unisys or generate 55.07% return on investment over 90 days.

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

ASGN Inc  vs.  Unisys

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 latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Unisys

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Unisys are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Unisys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASGN and Unisys

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

The idea behind ASGN Inc and Unisys 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.