Correlation Between DICKS Sporting and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both DICKS Sporting 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 DICKS Sporting and KORN FERRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKS Sporting Goods and KORN FERRY INTL, you can compare the effects of market volatilities on DICKS Sporting 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 DICKS Sporting with a short position of KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKS Sporting and KORN FERRY.
Diversification Opportunities for DICKS Sporting and KORN FERRY
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DICKS and KORN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding DICKS Sporting Goods 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 DICKS Sporting 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 DICKS Sporting Goods 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 DICKS Sporting i.e., DICKS Sporting and KORN FERRY go up and down completely randomly.
Pair Corralation between DICKS Sporting and KORN FERRY
Assuming the 90 days horizon DICKS Sporting Goods is expected to generate 1.21 times more return on investment than KORN FERRY. However, DICKS Sporting is 1.21 times more volatile than KORN FERRY INTL. It trades about 0.07 of its potential returns per unit of risk. KORN FERRY INTL is currently generating about 0.05 per unit of risk. If you would invest 18,530 in DICKS Sporting Goods on September 13, 2024 and sell it today you would earn a total of 1,388 from holding DICKS Sporting Goods or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
DICKS Sporting Goods vs. KORN FERRY INTL
Performance |
| Timeline |
| DICKS Sporting Goods |
| KORN FERRY INTL |
DICKS Sporting and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKS Sporting and KORN FERRY
The main advantage of trading using opposite DICKS Sporting and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKS Sporting 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.| DICKS Sporting vs. Superior Plus Corp | DICKS Sporting vs. SIVERS SEMICONDUCTORS AB | DICKS Sporting vs. NorAm Drilling AS | DICKS Sporting vs. Norsk Hydro ASA |
| KORN FERRY vs. Axcelis Technologies | KORN FERRY vs. Pembina Pipeline Corp | KORN FERRY vs. PKSHA TECHNOLOGY INC | KORN FERRY vs. Playtech plc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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