Correlation Between Hudson Global and CTPartners Executive

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

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

Diversification Opportunities for Hudson Global and CTPartners Executive

0.04

Correlation Coefficient

Hudson Global  CTPartners Executive

Significant diversification

The 3 months correlation between Hudson and CTPartners is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and CTPartners Executive Search in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTPartners Executive and Hudson Global 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 Hudson Global are associated (or correlated) with CTPartners Executive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTPartners Executive has no effect on the direction of Hudson Global i.e., Hudson Global and CTPartners Executive go up and down completely randomly.

Pair Corralation between Hudson Global and CTPartners Executive

If you would invest  0.10  in CTPartners Executive Search on September 3, 2024 and sell it today you would earn a total of  0.00  from holding CTPartners Executive Search or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Hudson Global  vs.  CTPartners Executive Search

Hudson Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CTPartners Executive

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Hudson Global and CTPartners Executive

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

The idea behind Hudson Global and CTPartners Executive Search 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.