Correlation Between Staffing 360 and Caldwell Partners

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

By analyzing existing cross correlation between Staffing 360 Solutions and The Caldwell Partners, you can compare the effects of market volatilities on Staffing 360 and Caldwell Partners 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 Staffing 360 with a short position of Caldwell Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staffing 360 and Caldwell Partners.

Diversification Opportunities for Staffing 360 and Caldwell Partners

-0.44

Correlation Coefficient

Staffing 360  Caldwell Partners

Very good diversification

The 3 months correlation between Staffing and Caldwell is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Staffing 360 Solutions and The Caldwell Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldwell Partners and Staffing 360 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 Staffing 360 Solutions are associated (or correlated) with Caldwell Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldwell Partners has no effect on the direction of Staffing 360 i.e., Staffing 360 and Caldwell Partners go up and down completely randomly.

Pair Corralation between Staffing 360 and Caldwell Partners

Given the investment horizon of 90 days Staffing 360 Solutions is expected to under-perform the Caldwell Partners. In addition to that, Staffing 360 is 2.21 times more volatile than The Caldwell Partners. It trades about -0.07 of its total potential returns per unit of risk. The Caldwell Partners is currently generating about 0.01 per unit of volatility. If you would invest  79.00  in The Caldwell Partners on November 29, 2024 and sell it today you would lose (1.00) from holding The Caldwell Partners or give up 1.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	86.44%
Values	Daily Returns

Staffing 360 Solutions  vs.  The Caldwell Partners

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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 nearly stable basic indicators, Caldwell Partners is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Staffing 360 and Caldwell Partners

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

The idea behind Staffing 360 Solutions and The Caldwell Partners 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 Stocks Directory module to find actively traded stocks across global markets.