Correlation Between KORN FERRY and United States
Can any of the company-specific risk be diversified away by investing in both KORN FERRY and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on KORN FERRY and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORN FERRY and United States.
Diversification Opportunities for KORN FERRY and United States
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KORN and United is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding KORN FERRY INTL and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of KORN FERRY i.e., KORN FERRY and United States go up and down completely randomly.
Pair Corralation between KORN FERRY and United States
Assuming the 90 days trading horizon KORN FERRY is expected to generate 1.19 times less return on investment than United States. But when comparing it to its historical volatility, KORN FERRY INTL is 1.63 times less risky than United States. It trades about 0.05 of its potential returns per unit of risk. United States Steel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,414 in United States Steel on September 14, 2024 and sell it today you would earn a total of 1,017 from holding United States Steel or generate 42.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
KORN FERRY INTL vs. United States Steel
Performance |
| Timeline |
| KORN FERRY INTL |
| United States Steel |
KORN FERRY and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORN FERRY and United States
The main advantage of trading using opposite KORN FERRY and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORN FERRY position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| KORN FERRY vs. United States Steel | KORN FERRY vs. LEGACY IRON ORE | KORN FERRY vs. ARDAGH METAL PACDL 0001 | KORN FERRY vs. Caltagirone SpA |
| United States vs. ArcelorMittal | United States vs. NIPPON STEEL SPADR | United States vs. Reliance Steel Aluminum | United States vs. Superior Plus Corp |
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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