Correlation Between Adecco Group and PERSOL HOLDINGS

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

By analyzing existing cross correlation between Adecco Group AG and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on Adecco Group and PERSOL HOLDINGS 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 Adecco Group with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and PERSOL HOLDINGS.

Diversification Opportunities for Adecco Group and PERSOL HOLDINGS

0.6

Correlation Coefficient

Adecco Group  PERSOL HOLDINGS

Poor diversification

The 3 months correlation between Adecco and PERSOL is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and Adecco Group 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 Adecco Group AG are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of Adecco Group i.e., Adecco Group and PERSOL HOLDINGS go up and down completely randomly.

Pair Corralation between Adecco Group and PERSOL HOLDINGS

Assuming the 90 days trading horizon Adecco Group AG is expected to generate 1.89 times more return on investment than PERSOL HOLDINGS. However, Adecco Group is 1.89 times more volatile than PERSOL HOLDINGS LTD. It trades about 0.12 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about 0.09 per unit of risk. If you would invest  1,140  in Adecco Group AG on April 24, 2025 and sell it today you would earn a total of  220.00  from holding Adecco Group AG or generate 19.3% return on investment over 90 days.

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

Adecco Group AG  vs.  PERSOL HOLDINGS LTD

Adecco Group AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Adecco Group AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Adecco Group reported solid returns over the last few months and may actually be approaching a breakup point.

PERSOL HOLDINGS LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PERSOL HOLDINGS LTD are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PERSOL HOLDINGS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Adecco Group and PERSOL HOLDINGS

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

The idea behind Adecco Group AG and PERSOL HOLDINGS LTD 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.