Correlation Between Korn Ferry and Hudson Global

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

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

Diversification Opportunities for Korn Ferry and Hudson Global

-0.25

Correlation Coefficient

Korn Ferry  Hudson Global

Very good diversification

The 3 months correlation between Korn and Hudson is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global 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 Hudson Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Global has no effect on the direction of Korn Ferry i.e., Korn Ferry and Hudson Global go up and down completely randomly.

Pair Corralation between Korn Ferry and Hudson Global

Considering the 90-day investment horizon Korn Ferry is expected to generate 0.66 times more return on investment than Hudson Global. However, Korn Ferry is 1.51 times less risky than Hudson Global. It trades about 0.06 of its potential returns per unit of risk. Hudson Global is currently generating about -0.06 per unit of risk. If you would invest  7,524  in Korn Ferry on August 30, 2024 and sell it today you would earn a total of  295.00  from holding Korn Ferry or generate 3.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Korn Ferry  vs.  Hudson Global

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.

Hudson Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic 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.

Pair Trading with Korn Ferry and Hudson Global

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

The idea behind Korn Ferry and Hudson Global 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.