Correlation Between ManpowerGroup and HireRight Holdings

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

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

Diversification Opportunities for ManpowerGroup and HireRight Holdings

-0.71

Correlation Coefficient

ManpowerGroup  HireRight Holdings

Pay attention - limited upside

The 3 months correlation between ManpowerGroup and HireRight is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ManpowerGroup and HireRight Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HireRight Holdings Corp and ManpowerGroup 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 ManpowerGroup are associated (or correlated) with HireRight Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HireRight Holdings Corp has no effect on the direction of ManpowerGroup i.e., ManpowerGroup and HireRight Holdings go up and down completely randomly.

Pair Corralation between ManpowerGroup and HireRight Holdings

If you would invest  1,436  in HireRight Holdings Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding HireRight Holdings Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

ManpowerGroup  vs.  HireRight Holdings Corp

ManpowerGroup

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ManpowerGroup has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

HireRight Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HireRight Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, HireRight Holdings is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ManpowerGroup and HireRight Holdings

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

The idea behind ManpowerGroup and HireRight Holdings Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.