Correlation Between CI GAMES and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both CI GAMES 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 CI GAMES and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI GAMES SA and Korn Ferry, you can compare the effects of market volatilities on CI GAMES 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 CI GAMES with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Korn Ferry.
Diversification Opportunities for CI GAMES and Korn Ferry
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CI7 and Korn is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and CI GAMES 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 CI GAMES SA 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 CI GAMES i.e., CI GAMES and Korn Ferry go up and down completely randomly.
Pair Corralation between CI GAMES and Korn Ferry
Assuming the 90 days horizon CI GAMES is expected to generate 2.57 times less return on investment than Korn Ferry. In addition to that, CI GAMES is 3.0 times more volatile than Korn Ferry. It trades about 0.01 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.06 per unit of volatility. If you would invest 4,699 in Korn Ferry on September 3, 2024 and sell it today you would earn a total of 2,751 from holding Korn Ferry or generate 58.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Korn Ferry
Performance |
| Timeline |
| CI GAMES SA |
| Korn Ferry |
CI GAMES and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Korn Ferry
The main advantage of trading using opposite CI GAMES and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES 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.| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
| Korn Ferry vs. MINCO SILVER | Korn Ferry vs. CI GAMES SA | Korn Ferry vs. GAMESTOP | Korn Ferry vs. Canadian Utilities Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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