Correlation Between Caldwell Partners and Kelly Services

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

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

Diversification Opportunities for Caldwell Partners and Kelly Services

0.52

Correlation Coefficient

Caldwell Partners  Kelly Services

Very weak diversification

The 3 months correlation between Caldwell and Kelly is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding The Caldwell Partners 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 Caldwell Partners 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 The Caldwell Partners 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 Caldwell Partners i.e., Caldwell Partners and Kelly Services go up and down completely randomly.

Pair Corralation between Caldwell Partners and Kelly Services

Assuming the 90 days horizon The Caldwell Partners is expected to under-perform the Kelly Services. In addition to that, Caldwell Partners is 1.81 times more volatile than Kelly Services A. It trades about -0.09 of its total potential returns per unit of risk. Kelly Services A is currently generating about -0.01 per unit of volatility. If you would invest  1,358  in Kelly Services A on December 30, 2024 and sell it today you would lose (29.00) from holding Kelly Services A or give up 2.14% of portfolio value over 90 days.

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

The Caldwell Partners  vs.  Kelly Services A

Caldwell Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Caldwell Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 Caldwell Partners and Kelly Services

The main advantage of trading using opposite Caldwell Partners and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caldwell Partners 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 The Caldwell Partners 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.