Correlation Between Korn Ferry and GEE

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

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

Diversification Opportunities for Korn Ferry and GEE

0.17

Correlation Coefficient

Korn Ferry  GEE

Average diversification

The 3 months correlation between Korn and GEE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group and Korn Ferry 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 Korn Ferry are associated (or correlated) with GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of Korn Ferry i.e., Korn Ferry and GEE go up and down completely randomly.

Pair Corralation between Korn Ferry and GEE

Considering the 90-day investment horizon Korn Ferry is expected to under-perform the GEE. But the stock apears to be less risky and, when comparing its historical volatility, Korn Ferry is 1.73 times less risky than GEE. The stock trades about -0.02 of its potential returns per unit of risk. The GEE Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  25.00  in GEE Group on September 17, 2024 and sell it today you would lose (1.00) from holding GEE Group or give up 4.0% of portfolio value over 90 days.

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

Korn Ferry  vs.  GEE Group

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.

GEE Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GEE Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GEE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Korn Ferry and GEE

The main advantage of trading using opposite Korn Ferry and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.

The idea behind Korn Ferry and GEE Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.