Correlation Between ASGN and Korn Ferry

Can any of the company-specific risk be diversified away by investing in both ASGN 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 ASGN and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASGN Inc and Korn Ferry, you can compare the effects of market volatilities on ASGN 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 ASGN with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Korn Ferry.

Diversification Opportunities for ASGN and Korn Ferry

0.39

Correlation Coefficient

ASGN  Korn Ferry

Weak diversification

The 3 months correlation between ASGN and Korn is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and ASGN 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 ASGN Inc 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 ASGN i.e., ASGN and Korn Ferry go up and down completely randomly.

Pair Corralation between ASGN and Korn Ferry

Given the investment horizon of 90 days ASGN is expected to generate 6.43 times less return on investment than Korn Ferry. In addition to that, ASGN is 1.1 times more volatile than Korn Ferry. It trades about 0.01 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.04 per unit of volatility. If you would invest  5,166  in Korn Ferry on October 3, 2024 and sell it today you would earn a total of  1,535  from holding Korn Ferry or generate 29.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ASGN Inc  vs.  Korn Ferry

ASGN Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Korn Ferry

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Korn Ferry has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Korn Ferry is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ASGN and Korn Ferry

The main advantage of trading using opposite ASGN and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN 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 ASGN Inc and Korn Ferry 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.