Correlation Between International Business and ASGN
Can any of the company-specific risk be diversified away by investing in both International Business and ASGN 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 International Business and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and ASGN Inc, you can compare the effects of market volatilities on International Business and ASGN 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 International Business with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and ASGN.
Diversification Opportunities for International Business and ASGN
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and ASGN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and International Business 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 International Business Machines are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of International Business i.e., International Business and ASGN go up and down completely randomly.
Pair Corralation between International Business and ASGN
Considering the 90-day investment horizon International Business Machines is expected to under-perform the ASGN. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines is 1.78 times less risky than ASGN. The stock trades about -0.21 of its potential returns per unit of risk. The ASGN Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,134 in ASGN Inc on June 9, 2025 and sell it today you would earn a total of 173.00 from holding ASGN Inc or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. ASGN Inc
Performance |
| Timeline |
| International Business |
| ASGN Inc |
International Business and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and ASGN
The main advantage of trading using opposite International Business and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| International Business vs. Cisco Systems | International Business vs. Fiserv, | International Business vs. Intel | International Business vs. Johnson Johnson |
| ASGN vs. CLARIVATE PLC | ASGN vs. ExlService Holdings | ASGN vs. Genpact Limited | ASGN vs. Science Applications International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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