Correlation Between ManpowerGroup and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both ManpowerGroup 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 ManpowerGroup and Korn Ferry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ManpowerGroup and Korn Ferry, you can compare the effects of market volatilities on ManpowerGroup 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 ManpowerGroup with a short position of Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of ManpowerGroup and Korn Ferry.
Diversification Opportunities for ManpowerGroup and Korn Ferry
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ManpowerGroup and Korn is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ManpowerGroup and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and ManpowerGroup 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 ManpowerGroup 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 ManpowerGroup i.e., ManpowerGroup and Korn Ferry go up and down completely randomly.
Pair Corralation between ManpowerGroup and Korn Ferry
Considering the 90-day investment horizon ManpowerGroup is expected to generate 1.59 times more return on investment than Korn Ferry. However, ManpowerGroup is 1.59 times more volatile than Korn Ferry. It trades about 0.01 of its potential returns per unit of risk. Korn Ferry is currently generating about -0.16 per unit of risk. If you would invest 7,468 in ManpowerGroup on January 20, 2024 and sell it today you would earn a total of 16.00 from holding ManpowerGroup or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ManpowerGroup vs. Korn Ferry
Performance |
| Timeline |
| ManpowerGroup |
| Korn Ferry |
ManpowerGroup and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ManpowerGroup and Korn Ferry
The main advantage of trading using opposite ManpowerGroup and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ManpowerGroup 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.| ManpowerGroup vs. ExlService Holdings | ManpowerGroup vs. WNS Holdings | ManpowerGroup vs. Gartner | ManpowerGroup vs. The Hackett Group |
| Korn Ferry vs. ExlService Holdings | Korn Ferry vs. WNS Holdings | Korn Ferry vs. Gartner | Korn Ferry vs. The Hackett Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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