Correlation Between Cross Country and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both Cross Country 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 Cross Country and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cross Country Healthcare and Korn Ferry, you can compare the effects of market volatilities on Cross Country 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 Cross Country with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cross Country and Korn Ferry.
Diversification Opportunities for Cross Country and Korn Ferry
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cross and Korn is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cross Country Healthcare and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and Cross Country 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 Cross Country Healthcare 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 has no effect on the direction of Cross Country i.e., Cross Country and Korn Ferry go up and down completely randomly.
Pair Corralation between Cross Country and Korn Ferry
Assuming the 90 days horizon Cross Country Healthcare is expected to under-perform the Korn Ferry. In addition to that, Cross Country is 1.68 times more volatile than Korn Ferry. It trades about -0.05 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.06 per unit of volatility. If you would invest 4,641 in Korn Ferry on September 2, 2024 and sell it today you would earn a total of 2,809 from holding Korn Ferry or generate 60.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cross Country Healthcare vs. Korn Ferry
Performance |
| Timeline |
| Cross Country Healthcare |
| Korn Ferry |
Cross Country and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cross Country and Korn Ferry
The main advantage of trading using opposite Cross Country and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cross Country 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.| Cross Country vs. SMA Solar Technology | Cross Country vs. Align Technology | Cross Country vs. Micron Technology | Cross Country vs. Transportadora de Gas |
| Korn Ferry vs. SIEM OFFSHORE NEW | Korn Ferry vs. Perdoceo Education | Korn Ferry vs. Tianjin Capital Environmental | Korn Ferry vs. MITSUBISHI STEEL MFG |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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