Correlation Between Lendlease and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both Lendlease 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 Lendlease and KORN FERRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and KORN FERRY INTL, you can compare the effects of market volatilities on Lendlease 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 Lendlease with a short position of KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and KORN FERRY.
Diversification Opportunities for Lendlease and KORN FERRY
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lendlease and KORN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and KORN FERRY INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORN FERRY INTL and Lendlease 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 Lendlease Group 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 INTL has no effect on the direction of Lendlease i.e., Lendlease and KORN FERRY go up and down completely randomly.
Pair Corralation between Lendlease and KORN FERRY
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.82 times more return on investment than KORN FERRY. However, Lendlease Group is 1.22 times less risky than KORN FERRY. It trades about 0.02 of its potential returns per unit of risk. KORN FERRY INTL is currently generating about -0.17 per unit of risk. If you would invest 407.00 in Lendlease Group on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Lendlease Group or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lendlease Group vs. KORN FERRY INTL
Performance |
| Timeline |
| Lendlease Group |
| KORN FERRY INTL |
Lendlease and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and KORN FERRY
The main advantage of trading using opposite Lendlease and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease 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.The idea behind Lendlease Group and KORN FERRY INTL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KORN FERRY vs. Axcelis Technologies | KORN FERRY vs. Pembina Pipeline Corp | KORN FERRY vs. PKSHA TECHNOLOGY INC | KORN FERRY vs. Playtech plc |
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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