Correlation Between Korn Ferry and Kadant
Can any of the company-specific risk be diversified away by investing in both Korn Ferry and Kadant 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 Kadant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korn Ferry and Kadant Inc, you can compare the effects of market volatilities on Korn Ferry and Kadant 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 Kadant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korn Ferry and Kadant.
Diversification Opportunities for Korn Ferry and Kadant
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Korn and Kadant is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and Kadant Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kadant 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 Kadant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kadant Inc has no effect on the direction of Korn Ferry i.e., Korn Ferry and Kadant go up and down completely randomly.
Pair Corralation between Korn Ferry and Kadant
Considering the 90-day investment horizon Korn Ferry is expected to generate 0.74 times more return on investment than Kadant. However, Korn Ferry is 1.36 times less risky than Kadant. It trades about 0.06 of its potential returns per unit of risk. Kadant Inc is currently generating about -0.02 per unit of risk. If you would invest 6,887 in Korn Ferry on June 11, 2025 and sell it today you would earn a total of 406.00 from holding Korn Ferry or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korn Ferry vs. Kadant Inc
Performance |
| Timeline |
| Korn Ferry |
| Kadant Inc |
Korn Ferry and Kadant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korn Ferry and Kadant
The main advantage of trading using opposite Korn Ferry and Kadant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, Kadant 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 Kadant will offset losses from the drop in Kadant's long position.| Korn Ferry vs. Heidrick Struggles International | Korn Ferry vs. Kelly Services A | Korn Ferry vs. Kforce Inc | Korn Ferry vs. ManpowerGroup |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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