Correlation Between TrueBlue and Korn Ferry

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

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

Diversification Opportunities for TrueBlue and Korn Ferry

0.56

Correlation Coefficient

TrueBlue  Korn Ferry

Very weak diversification

The 3 months correlation between TrueBlue and Korn is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and TrueBlue 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 TrueBlue 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 TrueBlue i.e., TrueBlue and Korn Ferry go up and down completely randomly.

Pair Corralation between TrueBlue and Korn Ferry

Considering the 90-day investment horizon TrueBlue is expected to under-perform the Korn Ferry. In addition to that, TrueBlue is 2.48 times more volatile than Korn Ferry. It trades about -0.11 of its total potential returns per unit of risk. Korn Ferry is currently generating about 0.02 per unit of volatility. If you would invest  6,701  in Korn Ferry on December 28, 2024 and sell it today you would earn a total of  75.00  from holding Korn Ferry or generate 1.12% return on investment over 90 days.

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

TrueBlue  vs.  Korn Ferry

TrueBlue

Risk-Adjusted Performance

Very Weak

Over the last 90 days TrueBlue has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm 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 TrueBlue and Korn Ferry

The main advantage of trading using opposite TrueBlue and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueBlue 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 TrueBlue 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.