Correlation Between Hirequest and Korn Ferry

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

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

Diversification Opportunities for Hirequest and Korn Ferry

-0.57

Correlation Coefficient

Hirequest  Korn Ferry

Excellent diversification

The 3 months correlation between Hirequest and Korn is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hirequest and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and Hirequest 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 Hirequest 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 Hirequest i.e., Hirequest and Korn Ferry go up and down completely randomly.

Pair Corralation between Hirequest and Korn Ferry

Considering the 90-day investment horizon Hirequest is expected to generate 1.72 times more return on investment than Korn Ferry. However, Hirequest is 1.72 times more volatile than Korn Ferry. It trades about 0.03 of its potential returns per unit of risk. Korn Ferry is currently generating about 0.02 per unit of risk. If you would invest  1,310  in Hirequest on December 28, 2024 and sell it today you would earn a total of  34.00  from holding Hirequest or generate 2.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Hirequest  vs.  Korn Ferry

Hirequest

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hirequest are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Hirequest is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Korn Ferry

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Korn Ferry are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 Hirequest and Korn Ferry

The main advantage of trading using opposite Hirequest and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hirequest 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 Hirequest 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.