Correlation Between CTPartners Executive and Kelly Services

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

By analyzing existing cross correlation between CTPartners Executive Search and Kelly Services A, you can compare the effects of market volatilities on CTPartners Executive and Kelly Services 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 CTPartners Executive with a short position of Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTPartners Executive and Kelly Services.

Diversification Opportunities for CTPartners Executive and Kelly Services

0.0

Correlation Coefficient

CTPartners Executive  Kelly Services

Pay attention - limited upside

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

Pair Corralation between CTPartners Executive and Kelly Services

If you would invest (100.00) in CTPartners Executive Search on December 29, 2024 and sell it today you would earn a total of  100.00  from holding CTPartners Executive Search or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CTPartners Executive Search  vs.  Kelly Services A

CTPartners Executive

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTPartners Executive Search has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CTPartners Executive is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Kelly Services A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kelly Services A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Kelly Services is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CTPartners Executive and Kelly Services

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

The idea behind CTPartners Executive Search and Kelly Services A 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.