Correlation Between KORN FERRY and Ballard Power
Can any of the company-specific risk be diversified away by investing in both KORN FERRY and Ballard Power 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 KORN FERRY and Ballard Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORN FERRY INTL and Ballard Power Systems, you can compare the effects of market volatilities on KORN FERRY and Ballard Power 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 KORN FERRY with a short position of Ballard Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORN FERRY and Ballard Power.
Diversification Opportunities for KORN FERRY and Ballard Power
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KORN and Ballard is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding KORN FERRY INTL and Ballard Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballard Power Systems and KORN FERRY 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 KORN FERRY INTL are associated (or correlated) with Ballard Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballard Power Systems has no effect on the direction of KORN FERRY i.e., KORN FERRY and Ballard Power go up and down completely randomly.
Pair Corralation between KORN FERRY and Ballard Power
Assuming the 90 days trading horizon KORN FERRY INTL is expected to generate 0.24 times more return on investment than Ballard Power. However, KORN FERRY INTL is 4.17 times less risky than Ballard Power. It trades about 0.25 of its potential returns per unit of risk. Ballard Power Systems is currently generating about -0.29 per unit of risk. If you would invest 6,500 in KORN FERRY INTL on November 3, 2024 and sell it today you would earn a total of 350.00 from holding KORN FERRY INTL or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KORN FERRY INTL vs. Ballard Power Systems
Performance |
| Timeline |
| KORN FERRY INTL |
| Ballard Power Systems |
KORN FERRY and Ballard Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORN FERRY and Ballard Power
The main advantage of trading using opposite KORN FERRY and Ballard Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORN FERRY position performs unexpectedly, Ballard Power 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 Ballard Power will offset losses from the drop in Ballard Power's long position.| KORN FERRY vs. AOYAMA TRADING | KORN FERRY vs. Scottish Mortgage Investment | KORN FERRY vs. Southwest Airlines Co | KORN FERRY vs. MidCap Financial Investment |
| Ballard Power vs. Powercell Sweden | Ballard Power vs. Nel ASA | Ballard Power vs. ITM Power Plc | Ballard Power vs. Plug Power |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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