Correlation Between Robert Half and Ziprecruiter

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

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

Diversification Opportunities for Robert Half and Ziprecruiter

0.78

Correlation Coefficient

Robert Half  Ziprecruiter

Poor diversification

The 3 months correlation between Robert and Ziprecruiter is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and Ziprecruiter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziprecruiter and Robert Half 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 Robert Half International are associated (or correlated) with Ziprecruiter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziprecruiter has no effect on the direction of Robert Half i.e., Robert Half and Ziprecruiter go up and down completely randomly.

Pair Corralation between Robert Half and Ziprecruiter

Considering the 90-day investment horizon Robert Half International is expected to under-perform the Ziprecruiter. But the stock apears to be less risky and, when comparing its historical volatility, Robert Half International is 1.4 times less risky than Ziprecruiter. The stock trades about -0.24 of its potential returns per unit of risk. The Ziprecruiter is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest  1,106  in Ziprecruiter on February 4, 2024 and sell it today you would lose (73.00) from holding Ziprecruiter or give up 6.6% of portfolio value over 90 days.

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

Robert Half International  vs.  Ziprecruiter

Robert Half International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robert Half International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ziprecruiter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ziprecruiter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in June 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Robert Half and Ziprecruiter

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

The idea behind Robert Half International and Ziprecruiter 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.