Correlation Between Korn Ferry and ASGN

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

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

Diversification Opportunities for Korn Ferry and ASGN

0.32

Correlation Coefficient

Korn Ferry  ASGN

Weak diversification

The 3 months correlation between Korn and ASGN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Korn Ferry i.e., Korn Ferry and ASGN go up and down completely randomly.

Pair Corralation between Korn Ferry and ASGN

Considering the 90-day investment horizon Korn Ferry is expected to generate 0.92 times more return on investment than ASGN. However, Korn Ferry is 1.09 times less risky than ASGN. It trades about -0.06 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.07 per unit of risk. If you would invest  7,299  in Korn Ferry on September 27, 2024 and sell it today you would lose (539.00) from holding Korn Ferry or give up 7.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Korn Ferry  vs.  ASGN Inc

Korn Ferry

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Korn Ferry has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ASGN Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Korn Ferry and ASGN

The main advantage of trading using opposite Korn Ferry and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.

The idea behind Korn Ferry and ASGN Inc 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.