Correlation Between First Advantage and Concentrix
Can any of the company-specific risk be diversified away by investing in both First Advantage and Concentrix 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 First Advantage and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Advantage Corp and Concentrix, you can compare the effects of market volatilities on First Advantage and Concentrix 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 First Advantage with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Advantage and Concentrix.
Diversification Opportunities for First Advantage and Concentrix
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Concentrix is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding First Advantage Corp and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and First Advantage 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 First Advantage Corp are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of First Advantage i.e., First Advantage and Concentrix go up and down completely randomly.
Pair Corralation between First Advantage and Concentrix
Allowing for the 90-day total investment horizon First Advantage Corp is expected to generate 0.67 times more return on investment than Concentrix. However, First Advantage Corp is 1.49 times less risky than Concentrix. It trades about 0.06 of its potential returns per unit of risk. Concentrix is currently generating about -0.08 per unit of risk. If you would invest 1,173 in First Advantage Corp on September 25, 2024 and sell it today you would earn a total of 675.00 from holding First Advantage Corp or generate 57.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
First Advantage Corp vs. Concentrix
Performance |
Timeline |
First Advantage Corp |
Concentrix |
First Advantage and Concentrix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Advantage and Concentrix
The main advantage of trading using opposite First Advantage and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Advantage position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.First Advantage vs. Kforce Inc | First Advantage vs. Korn Ferry | First Advantage vs. Hudson Global | First Advantage vs. Kelly Services B |
Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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