Correlation Between Strix Group and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both Strix Group 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 Strix Group and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Korn Ferry, you can compare the effects of market volatilities on Strix Group 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 Strix Group with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Korn Ferry.
Diversification Opportunities for Strix Group and Korn Ferry
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strix and Korn is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and Strix Group 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 Strix Group Plc 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 Strix Group i.e., Strix Group and Korn Ferry go up and down completely randomly.
Pair Corralation between Strix Group and Korn Ferry
Assuming the 90 days horizon Strix Group Plc is expected to generate 1.88 times more return on investment than Korn Ferry. However, Strix Group is 1.88 times more volatile than Korn Ferry. It trades about 0.08 of its potential returns per unit of risk. Korn Ferry is currently generating about -0.16 per unit of risk. If you would invest 56.00 in Strix Group Plc on December 5, 2024 and sell it today you would earn a total of 2.00 from holding Strix Group Plc or generate 3.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Strix Group Plc vs. Korn Ferry
Performance |
Timeline |
Strix Group Plc |
Korn Ferry |
Strix Group and Korn Ferry Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strix Group and Korn Ferry
The main advantage of trading using opposite Strix Group and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group 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.Strix Group vs. UNIQA INSURANCE GR | Strix Group vs. COMBA TELECOM SYST | Strix Group vs. PANIN INSURANCE | Strix Group vs. Chunghwa Telecom Co |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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