Correlation Between Brinks and Korn Ferry

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

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

Diversification Opportunities for Brinks and Korn Ferry

-0.43

Correlation Coefficient

Brinks  Korn Ferry

Very good diversification

The 3 months correlation between Brinks and Korn is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Brinks Company and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry and Brinks 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 Brinks Company 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 Brinks i.e., Brinks and Korn Ferry go up and down completely randomly.

Pair Corralation between Brinks and Korn Ferry

Considering the 90-day investment horizon Brinks Company is expected to under-perform the Korn Ferry. But the stock apears to be less risky and, when comparing its historical volatility, Brinks Company is 1.13 times less risky than Korn Ferry. The stock trades about -0.13 of its potential returns per unit of risk. The Korn Ferry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  7,268  in Korn Ferry on August 30, 2024 and sell it today you would earn a total of  551.00  from holding Korn Ferry or generate 7.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Brinks Company  vs.  Korn Ferry

Brinks Company

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brinks Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Korn Ferry

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Korn Ferry are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical and fundamental indicators, Korn Ferry may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Brinks and Korn Ferry

The main advantage of trading using opposite Brinks and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinks 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 Brinks Company 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.