Correlation Between Metals One and Kforce
Can any of the company-specific risk be diversified away by investing in both Metals One and Kforce 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 Metals One and Kforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metals One PLC and Kforce Inc, you can compare the effects of market volatilities on Metals One and Kforce 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 Metals One with a short position of Kforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metals One and Kforce.
Diversification Opportunities for Metals One and Kforce
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metals and Kforce is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Metals One PLC and Kforce Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kforce Inc and Metals One 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 Metals One PLC are associated (or correlated) with Kforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kforce Inc has no effect on the direction of Metals One i.e., Metals One and Kforce go up and down completely randomly.
Pair Corralation between Metals One and Kforce
Assuming the 90 days trading horizon Metals One PLC is expected to generate 4.72 times more return on investment than Kforce. However, Metals One is 4.72 times more volatile than Kforce Inc. It trades about 0.02 of its potential returns per unit of risk. Kforce Inc is currently generating about -0.03 per unit of risk. If you would invest 4,500 in Metals One PLC on March 25, 2025 and sell it today you would lose (2,650) from holding Metals One PLC or give up 58.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
Metals One PLC vs. Kforce Inc
Performance |
| Timeline |
| Metals One PLC |
| Kforce Inc |
Metals One and Kforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metals One and Kforce
The main advantage of trading using opposite Metals One and Kforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals One position performs unexpectedly, Kforce 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 Kforce will offset losses from the drop in Kforce's long position.| Metals One vs. Ryanair Holdings plc | Metals One vs. Axway Software SA | Metals One vs. Ion Beam Applications | Metals One vs. Systemair AB |
| Kforce vs. Heidrick Struggles International | Kforce vs. ManpowerGroup | Kforce vs. Korn Ferry | Kforce vs. Hudson Global |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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