Correlation Between Recruit Holdings and HUDSON GLOBAL

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

By analyzing existing cross correlation between Recruit Holdings Co and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on Recruit Holdings and HUDSON GLOBAL 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 Recruit Holdings with a short position of HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recruit Holdings and HUDSON GLOBAL.

Diversification Opportunities for Recruit Holdings and HUDSON GLOBAL

0.38

Correlation Coefficient

Recruit Holdings  HUDSON GLOBAL

Weak diversification

The 3 months correlation between Recruit and HUDSON is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Recruit Holdings Co and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL and Recruit Holdings 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 Recruit Holdings Co are associated (or correlated) with HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of Recruit Holdings i.e., Recruit Holdings and HUDSON GLOBAL go up and down completely randomly.

Pair Corralation between Recruit Holdings and HUDSON GLOBAL

Assuming the 90 days horizon Recruit Holdings Co is expected to generate 0.83 times more return on investment than HUDSON GLOBAL. However, Recruit Holdings Co is 1.21 times less risky than HUDSON GLOBAL. It trades about 0.04 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about -0.03 per unit of risk. If you would invest  4,367  in Recruit Holdings Co on April 24, 2025 and sell it today you would earn a total of  204.00  from holding Recruit Holdings Co or generate 4.67% return on investment over 90 days.

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

Recruit Holdings Co  vs.  HUDSON GLOBAL INCDL 001

Recruit Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Recruit Holdings Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Recruit Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

HUDSON GLOBAL INCDL

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUDSON GLOBAL INCDL 001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Recruit Holdings and HUDSON GLOBAL

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

The idea behind Recruit Holdings Co and HUDSON GLOBAL INCDL 001 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.