Correlation Between Heidrick Struggles and HeadHunter Group

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

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

Diversification Opportunities for Heidrick Struggles and HeadHunter Group

0.0

Correlation Coefficient

Heidrick Struggles  HeadHunter Group

Pay attention - limited upside

The 3 months correlation between Heidrick and HeadHunter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Heidrick Struggles Internation and HeadHunter Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeadHunter Group PLC and Heidrick Struggles 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 Heidrick Struggles International are associated (or correlated) with HeadHunter Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeadHunter Group PLC has no effect on the direction of Heidrick Struggles i.e., Heidrick Struggles and HeadHunter Group go up and down completely randomly.

Pair Corralation between Heidrick Struggles and HeadHunter Group

If you would invest  1,503  in HeadHunter Group PLC on February 2, 2024 and sell it today you would earn a total of  0.00  from holding HeadHunter Group PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Heidrick Struggles Internation  vs.  HeadHunter Group PLC

Heidrick Struggles

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Heidrick Struggles International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Heidrick Struggles is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

HeadHunter Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HeadHunter Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, HeadHunter Group is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Heidrick Struggles and HeadHunter Group

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

The idea behind Heidrick Struggles International and HeadHunter Group PLC 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.