Correlation Between Hudson Global and Staffing 360

Can any of the company-specific risk be diversified away by investing in both Hudson Global and Staffing 360 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 Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hudson Global and Staffing 360 Solutions, you can compare the effects of market volatilities on Hudson Global and Staffing 360 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 Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Global and Staffing 360.

Diversification Opportunities for Hudson Global and Staffing 360

-0.59

Correlation Coefficient

Hudson Global  Staffing 360

Excellent diversification

The 3 months correlation between Hudson and Staffing is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions 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 Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Hudson Global i.e., Hudson Global and Staffing 360 go up and down completely randomly.

Pair Corralation between Hudson Global and Staffing 360

Given the investment horizon of 90 days Hudson Global is expected to generate 0.24 times more return on investment than Staffing 360. However, Hudson Global is 4.15 times less risky than Staffing 360. It trades about -0.12 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about -0.07 per unit of risk. If you would invest  1,289  in Hudson Global on December 29, 2024 and sell it today you would lose (217.00) from holding Hudson Global or give up 16.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	50.82%
Values	Daily Returns

Hudson Global  vs.  Staffing 360 Solutions

Hudson Global

Risk-Adjusted Performance

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 April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Staffing 360 Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Staffing 360 Solutions 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.

Pair Trading with Hudson Global and Staffing 360

The main advantage of trading using opposite Hudson Global and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.

The idea behind Hudson Global and Staffing 360 Solutions 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..