Correlation Between BG Staffing and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both BG Staffing 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 BG Staffing and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Staffing and Korn Ferry, you can compare the effects of market volatilities on BG Staffing 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 BG Staffing with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Staffing and Korn Ferry.
Diversification Opportunities for BG Staffing and Korn Ferry
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BGSF and Korn is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BG Staffing and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and BG Staffing 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 BG Staffing 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 BG Staffing i.e., BG Staffing and Korn Ferry go up and down completely randomly.
Pair Corralation between BG Staffing and Korn Ferry
Given the investment horizon of 90 days BG Staffing is expected to under-perform the Korn Ferry. In addition to that, BG Staffing is 1.56 times more volatile than Korn Ferry. It trades about -0.07 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.04 per unit of volatility. If you would invest 5,416 in Korn Ferry on November 2, 2024 and sell it today you would earn a total of 1,744 from holding Korn Ferry or generate 32.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BG Staffing vs. Korn Ferry
Performance |
| Timeline |
| BG Staffing |
| Korn Ferry |
BG Staffing and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BG Staffing and Korn Ferry
The main advantage of trading using opposite BG Staffing and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Staffing 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.| BG Staffing vs. Kelly Services A | BG Staffing vs. Korn Ferry | BG Staffing vs. Heidrick Struggles International | BG Staffing vs. Hudson Global |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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