Correlation Between Korn Ferry and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Korn Ferry and ManpowerGroup 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 ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korn Ferry and ManpowerGroup, you can compare the effects of market volatilities on Korn Ferry and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korn Ferry and ManpowerGroup.
Diversification Opportunities for Korn Ferry and ManpowerGroup
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korn and ManpowerGroup is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of Korn Ferry i.e., Korn Ferry and ManpowerGroup go up and down completely randomly.
Pair Corralation between Korn Ferry and ManpowerGroup
Considering the 90-day investment horizon Korn Ferry is expected to under-perform the ManpowerGroup. But the stock apears to be less risky and, when comparing its historical volatility, Korn Ferry is 1.48 times less risky than ManpowerGroup. The stock trades about -0.03 of its potential returns per unit of risk. The ManpowerGroup is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,426 in ManpowerGroup on January 25, 2024 and sell it today you would earn a total of 218.00 from holding ManpowerGroup or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korn Ferry vs. ManpowerGroup
Performance |
| Timeline |
| Korn Ferry |
| ManpowerGroup |
Korn Ferry and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korn Ferry and ManpowerGroup
The main advantage of trading using opposite Korn Ferry and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| Korn Ferry vs. Kforce Inc | Korn Ferry vs. TrueBlue | Korn Ferry vs. Ziprecruiter | Korn Ferry vs. Kanzhun Ltd ADR |
| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. TrueBlue | ManpowerGroup vs. Ziprecruiter | ManpowerGroup vs. Kanzhun Ltd ADR |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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