Correlation Between Kelly Services and DLH Holdings
Can any of the company-specific risk be diversified away by investing in both Kelly Services and DLH 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 Kelly Services and DLH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelly Services A and DLH Holdings Corp, you can compare the effects of market volatilities on Kelly Services and DLH 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 Kelly Services with a short position of DLH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and DLH Holdings.
Diversification Opportunities for Kelly Services and DLH Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kelly and DLH is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and DLH Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DLH Holdings Corp and Kelly Services 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 Kelly Services A are associated (or correlated) with DLH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DLH Holdings Corp has no effect on the direction of Kelly Services i.e., Kelly Services and DLH Holdings go up and down completely randomly.
Pair Corralation between Kelly Services and DLH Holdings
Assuming the 90 days horizon Kelly Services A is expected to generate 0.79 times more return on investment than DLH Holdings. However, Kelly Services A is 1.27 times less risky than DLH Holdings. It trades about 0.03 of its potential returns per unit of risk. DLH Holdings Corp is currently generating about -0.24 per unit of risk. If you would invest 2,149 in Kelly Services A on February 10, 2024 and sell it today you would earn a total of 53.00 from holding Kelly Services A or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. DLH Holdings Corp
Performance |
| Timeline |
| Kelly Services A |
| DLH Holdings Corp |
Kelly Services and DLH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and DLH Holdings
The main advantage of trading using opposite Kelly Services and DLH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services position performs unexpectedly, DLH 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 DLH Holdings will offset losses from the drop in DLH Holdings' long position.The idea behind Kelly Services A and DLH Holdings Corp 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.| DLH Holdings vs. Network 1 Technologies | DLH Holdings vs. Civeo Corp | DLH Holdings vs. BrightView Holdings | DLH Holdings vs. Maximus |
Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |