Correlation Between DLH Holdings and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both DLH Holdings 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 DLH Holdings and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DLH Holdings Corp and Korn Ferry, you can compare the effects of market volatilities on DLH Holdings 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 DLH Holdings with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of DLH Holdings and Korn Ferry.
Diversification Opportunities for DLH Holdings and Korn Ferry
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DLH and Korn is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding DLH Holdings Corp and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and DLH Holdings 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 DLH Holdings Corp 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 DLH Holdings i.e., DLH Holdings and Korn Ferry go up and down completely randomly.
Pair Corralation between DLH Holdings and Korn Ferry
Given the investment horizon of 90 days DLH Holdings Corp is expected to under-perform the Korn Ferry. In addition to that, DLH Holdings is 1.9 times more volatile than Korn Ferry. It trades about -0.39 of its total potential returns per unit of risk. Korn Ferry is currently generating about -0.18 per unit of volatility. If you would invest 6,383 in Korn Ferry on January 17, 2024 and sell it today you would lose (299.00) from holding Korn Ferry or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DLH Holdings Corp vs. Korn Ferry
Performance |
| Timeline |
| DLH Holdings Corp |
| Korn Ferry |
DLH Holdings and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DLH Holdings and Korn Ferry
The main advantage of trading using opposite DLH Holdings and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DLH Holdings 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.| DLH Holdings vs. Discount Print USA | DLH Holdings vs. Cass Information Systems | DLH Holdings vs. Civeo Corp | DLH Holdings vs. Network 1 Technologies |
| Korn Ferry vs. Discount Print USA | Korn Ferry vs. Cass Information Systems | Korn Ferry vs. Civeo Corp | Korn Ferry vs. Network 1 Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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