Correlation Between JABIL CIRCUIT and Korn Ferry

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

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

Diversification Opportunities for JABIL CIRCUIT and Korn Ferry

-0.48

Correlation Coefficient

JABIL CIRCUIT  Korn Ferry

Very good diversification

The 3 months correlation between JABIL and Korn is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding JABIL CIRCUIT and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and JABIL CIRCUIT 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 JABIL CIRCUIT 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 JABIL CIRCUIT i.e., JABIL CIRCUIT and Korn Ferry go up and down completely randomly.

Pair Corralation between JABIL CIRCUIT and Korn Ferry

Assuming the 90 days trading horizon JABIL CIRCUIT is expected to generate 1.12 times more return on investment than Korn Ferry. However, JABIL CIRCUIT is 1.12 times more volatile than Korn Ferry. It trades about 0.07 of its potential returns per unit of risk. Korn Ferry is currently generating about -0.1 per unit of risk. If you would invest  12,894  in JABIL CIRCUIT on December 5, 2024 and sell it today you would earn a total of  1,016  from holding JABIL CIRCUIT or generate 7.88% return on investment over 90 days.

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

JABIL CIRCUIT  vs.  Korn Ferry

JABIL CIRCUIT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JABIL CIRCUIT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, JABIL CIRCUIT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Korn Ferry

Risk-Adjusted Performance

Very Weak

Over the last 90 days Korn Ferry has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with JABIL CIRCUIT and Korn Ferry

The main advantage of trading using opposite JABIL CIRCUIT and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JABIL CIRCUIT 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 JABIL CIRCUIT 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.