Correlation Between Carmat SA and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both Carmat SA 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 Carmat SA and KORN FERRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and KORN FERRY INTL, you can compare the effects of market volatilities on Carmat SA 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 Carmat SA with a short position of KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and KORN FERRY.
Diversification Opportunities for Carmat SA and KORN FERRY
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carmat and KORN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA 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 Carmat SA 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 Carmat 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 INTL has no effect on the direction of Carmat SA i.e., Carmat SA and KORN FERRY go up and down completely randomly.
Pair Corralation between Carmat SA and KORN FERRY
Assuming the 90 days horizon Carmat SA is expected to under-perform the KORN FERRY. In addition to that, Carmat SA is 2.47 times more volatile than KORN FERRY INTL. It trades about -0.12 of its total potential returns per unit of risk. KORN FERRY INTL is currently generating about 0.08 per unit of volatility. If you would invest 5,980 in KORN FERRY INTL on September 1, 2024 and sell it today you would earn a total of 1,370 from holding KORN FERRY INTL or generate 22.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. KORN FERRY INTL
Performance |
| Timeline |
| Carmat SA |
| KORN FERRY INTL |
Carmat SA and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and KORN FERRY
The main advantage of trading using opposite Carmat SA and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA 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.| Carmat SA vs. National Retail Properties | Carmat SA vs. Sunstone Hotel Investors | Carmat SA vs. CARSALESCOM | Carmat SA vs. FAST RETAIL ADR |
| KORN FERRY vs. Corporate Office Properties | KORN FERRY vs. Haverty Furniture Companies | KORN FERRY vs. ADRIATIC METALS LS 013355 | KORN FERRY vs. NURAN WIRELESS INC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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