Correlation Between GEE and Hudson Global

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

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

Diversification Opportunities for GEE and Hudson Global

0.51

Correlation Coefficient

GEE  Hudson Global

Very weak diversification

The 3 months correlation between GEE and Hudson is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global and GEE 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 GEE Group 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 has no effect on the direction of GEE i.e., GEE and Hudson Global go up and down completely randomly.

Pair Corralation between GEE and Hudson Global

Considering the 90-day investment horizon GEE Group is expected to under-perform the Hudson Global. But the stock apears to be less risky and, when comparing its historical volatility, GEE Group is 15.83 times less risky than Hudson Global. The stock trades about -0.04 of its potential returns per unit of risk. The Hudson Global is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,530  in Hudson Global on March 5, 2025 and sell it today you would lose (645.00) from holding Hudson Global or give up 42.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.59%
Values	Daily Returns

GEE Group  vs.  Hudson Global

GEE Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days GEE Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Hudson Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hudson Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in July 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with GEE and Hudson Global

The main advantage of trading using opposite GEE and Hudson Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE 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 GEE Group and Hudson Global 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.