Correlation Between Kanzhun and Barrett Business
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Barrett Business 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 Kanzhun and Barrett Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kanzhun Ltd ADR and Barrett Business Services, you can compare the effects of market volatilities on Kanzhun and Barrett Business 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 Kanzhun with a short position of Barrett Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Barrett Business.
Diversification Opportunities for Kanzhun and Barrett Business
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kanzhun and Barrett is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Barrett Business Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrett Business Services and Kanzhun 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 Kanzhun Ltd ADR are associated (or correlated) with Barrett Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrett Business Services has no effect on the direction of Kanzhun i.e., Kanzhun and Barrett Business go up and down completely randomly.
Pair Corralation between Kanzhun and Barrett Business
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Barrett Business. In addition to that, Kanzhun is 1.11 times more volatile than Barrett Business Services. It trades about -0.32 of its total potential returns per unit of risk. Barrett Business Services is currently generating about 0.33 per unit of volatility. If you would invest 3,692 in Barrett Business Services on August 31, 2024 and sell it today you would earn a total of 586.00 from holding Barrett Business Services or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Barrett Business Services
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Barrett Business Services |
Kanzhun and Barrett Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Barrett Business
The main advantage of trading using opposite Kanzhun and Barrett Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Barrett Business 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 Barrett Business will offset losses from the drop in Barrett Business' long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| Barrett Business vs. Korn Ferry | Barrett Business vs. Kelly Services A | Barrett Business vs. Kforce Inc | Barrett Business vs. Hudson Global |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |