Correlation Between Barrett Business and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both Barrett Business 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 Barrett Business and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrett Business Services and Korn Ferry, you can compare the effects of market volatilities on Barrett Business 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 Barrett Business with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrett Business and Korn Ferry.
Diversification Opportunities for Barrett Business and Korn Ferry
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barrett and Korn is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Barrett Business Services and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and Barrett Business 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 Barrett Business Services 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 has no effect on the direction of Barrett Business i.e., Barrett Business and Korn Ferry go up and down completely randomly.
Pair Corralation between Barrett Business and Korn Ferry
Given the investment horizon of 90 days Barrett Business Services is expected to generate 0.85 times more return on investment than Korn Ferry. However, Barrett Business Services is 1.18 times less risky than Korn Ferry. It trades about 0.1 of its potential returns per unit of risk. Korn Ferry is currently generating about 0.05 per unit of risk. If you would invest 2,384 in Barrett Business Services on August 27, 2024 and sell it today you would earn a total of 1,892 from holding Barrett Business Services or generate 79.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrett Business Services vs. Korn Ferry
Performance |
| Timeline |
| Barrett Business Services |
| Korn Ferry |
Barrett Business and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrett Business and Korn Ferry
The main advantage of trading using opposite Barrett Business and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrett Business 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.| Barrett Business vs. ExlService Holdings | Barrett Business vs. WNS Holdings | Barrett Business vs. Gartner | Barrett Business vs. The Hackett Group |
| Korn Ferry vs. Heidrick Struggles International | Korn Ferry vs. Kelly Services A | Korn Ferry vs. Kforce Inc | Korn Ferry vs. ManpowerGroup |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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