Correlation Between Korn Ferry and TriNet

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

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

Diversification Opportunities for Korn Ferry and TriNet

0.15

Correlation Coefficient

Korn Ferry  TriNet

Average diversification

The 3 months correlation between Korn and TriNet is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group 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 TriNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriNet Group has no effect on the direction of Korn Ferry i.e., Korn Ferry and TriNet go up and down completely randomly.

Pair Corralation between Korn Ferry and TriNet

Considering the 90-day investment horizon Korn Ferry is expected to under-perform the TriNet. But the stock apears to be less risky and, when comparing its historical volatility, Korn Ferry is 1.09 times less risky than TriNet. The stock trades about -0.2 of its potential returns per unit of risk. The TriNet Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,274  in TriNet Group on September 9, 2024 and sell it today you would earn a total of  195.00  from holding TriNet Group or generate 2.1% return on investment over 90 days.

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

Korn Ferry  vs.  TriNet Group

Korn Ferry

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Korn Ferry are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Korn Ferry is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

TriNet Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriNet Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, TriNet is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Korn Ferry and TriNet

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

The idea behind Korn Ferry and TriNet Group 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 CEOs Directory module to screen CEOs from public companies around the world.