Correlation Between Unusual Machines, and Adecco

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

By analyzing existing cross correlation between Unusual Machines, and Adecco Group, you can compare the effects of market volatilities on Unusual Machines, and Adecco 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 Unusual Machines, with a short position of Adecco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unusual Machines, and Adecco.

Diversification Opportunities for Unusual Machines, and Adecco

-0.76

Correlation Coefficient

Unusual Machines,  Adecco

Pay attention - limited upside

The 3 months correlation between Unusual and Adecco is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Unusual Machines, and Adecco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group and Unusual Machines, 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 Unusual Machines, are associated (or correlated) with Adecco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group has no effect on the direction of Unusual Machines, i.e., Unusual Machines, and Adecco go up and down completely randomly.

Pair Corralation between Unusual Machines, and Adecco

Given the investment horizon of 90 days Unusual Machines, is expected to under-perform the Adecco. In addition to that, Unusual Machines, is 2.84 times more volatile than Adecco Group. It trades about -0.15 of its total potential returns per unit of risk. Adecco Group is currently generating about 0.14 per unit of volatility. If you would invest  1,230  in Adecco Group on December 29, 2024 and sell it today you would earn a total of  312.00  from holding Adecco Group or generate 25.37% return on investment over 90 days.

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

Unusual Machines,  vs.  Adecco Group

Unusual Machines,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unusual Machines, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Adecco Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Adecco Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Adecco showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Unusual Machines, and Adecco

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

The idea behind Unusual Machines, and Adecco Group 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.