Correlation Between REGAL ASIAN and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and KORN FERRY 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 REGAL ASIAN and KORN FERRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and KORN FERRY INTL, you can compare the effects of market volatilities on REGAL ASIAN and KORN FERRY 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 REGAL ASIAN with a short position of KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and KORN FERRY.
Diversification Opportunities for REGAL ASIAN and KORN FERRY
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between REGAL and KORN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and KORN FERRY INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORN FERRY INTL and REGAL ASIAN 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 REGAL ASIAN INVESTMENTS are associated (or correlated) with KORN FERRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORN FERRY INTL has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and KORN FERRY go up and down completely randomly.
Pair Corralation between REGAL ASIAN and KORN FERRY
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the KORN FERRY. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 1.56 times less risky than KORN FERRY. The stock trades about -0.41 of its potential returns per unit of risk. The KORN FERRY INTL is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 7,300 in KORN FERRY INTL on September 12, 2024 and sell it today you would lose (500.00) from holding KORN FERRY INTL or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. KORN FERRY INTL
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| KORN FERRY INTL |
REGAL ASIAN and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and KORN FERRY
The main advantage of trading using opposite REGAL ASIAN and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, KORN FERRY 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 KORN FERRY will offset losses from the drop in KORN FERRY's long position.| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
| KORN FERRY vs. DICKS Sporting Goods | KORN FERRY vs. UNITED RENTALS | KORN FERRY vs. Lendlease Group | KORN FERRY vs. Air Lease |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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