Correlation Between Korn Ferry and GEE
Can any of the company-specific risk be diversified away by investing in both Korn Ferry and GEE 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 GEE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korn Ferry and GEE Group, you can compare the effects of market volatilities on Korn Ferry and GEE 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 GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korn Ferry and GEE.
Diversification Opportunities for Korn Ferry and GEE
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korn and GEE is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group 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 are associated (or correlated) with GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of Korn Ferry i.e., Korn Ferry and GEE go up and down completely randomly.
Pair Corralation between Korn Ferry and GEE
Considering the 90-day investment horizon Korn Ferry is expected to generate 0.51 times more return on investment than GEE. However, Korn Ferry is 1.95 times less risky than GEE. It trades about 0.06 of its potential returns per unit of risk. GEE Group is currently generating about -0.05 per unit of risk. If you would invest 4,927 in Korn Ferry on August 30, 2024 and sell it today you would earn a total of 2,892 from holding Korn Ferry or generate 58.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Korn Ferry vs. GEE Group
Performance |
| Timeline |
| Korn Ferry |
| GEE Group |
Korn Ferry and GEE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korn Ferry and GEE
The main advantage of trading using opposite Korn Ferry and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.| Korn Ferry vs. Heidrick Struggles International | Korn Ferry vs. Kelly Services A | Korn Ferry vs. Kforce Inc | Korn Ferry vs. ManpowerGroup |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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