Correlation Between Korn Ferry and TrueBlue
Can any of the company-specific risk be diversified away by investing in both Korn Ferry and TrueBlue 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 TrueBlue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korn Ferry and TrueBlue, you can compare the effects of market volatilities on Korn Ferry and TrueBlue 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 TrueBlue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korn Ferry and TrueBlue.
Diversification Opportunities for Korn Ferry and TrueBlue
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korn and TrueBlue is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue 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 TrueBlue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueBlue has no effect on the direction of Korn Ferry i.e., Korn Ferry and TrueBlue go up and down completely randomly.
Pair Corralation between Korn Ferry and TrueBlue
Considering the 90-day investment horizon Korn Ferry is expected to generate 3.2 times less return on investment than TrueBlue. But when comparing it to its historical volatility, Korn Ferry is 1.67 times less risky than TrueBlue. It trades about 0.03 of its potential returns per unit of risk. TrueBlue is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 760.00 in TrueBlue on November 1, 2024 and sell it today you would earn a total of 51.50 from holding TrueBlue or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korn Ferry vs. TrueBlue
Performance |
| Timeline |
| Korn Ferry |
| TrueBlue |
Korn Ferry and TrueBlue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korn Ferry and TrueBlue
The main advantage of trading using opposite Korn Ferry and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, TrueBlue 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 TrueBlue will offset losses from the drop in TrueBlue's long position.| Korn Ferry vs. Heidrick Struggles International | Korn Ferry vs. Kelly Services A | Korn Ferry vs. Kforce Inc | Korn Ferry vs. ManpowerGroup |
| TrueBlue vs. Kelly Services A | TrueBlue vs. Korn Ferry | TrueBlue vs. Heidrick Struggles International | TrueBlue vs. Hudson Global |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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