Correlation Between FEMALE HEALTH and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Korn Ferry, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Korn Ferry.
Diversification Opportunities for FEMALE HEALTH and Korn Ferry
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEMALE and Korn is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Korn Ferry go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Korn Ferry
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 1.47 times more return on investment than Korn Ferry. However, FEMALE HEALTH is 1.47 times more volatile than Korn Ferry. It trades about -0.03 of its potential returns per unit of risk. Korn Ferry is currently generating about -0.11 per unit of risk. If you would invest 68.00 in FEMALE HEALTH on September 12, 2024 and sell it today you would lose (3.00) from holding FEMALE HEALTH or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Korn Ferry
Performance |
| Timeline |
| FEMALE HEALTH |
| Korn Ferry |
FEMALE HEALTH and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Korn Ferry
The main advantage of trading using opposite FEMALE HEALTH and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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