Correlation Between Kanzhun and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Criteo Sa 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 Criteo Sa 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 Criteo Sa, you can compare the effects of market volatilities on Kanzhun and Criteo Sa 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 Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Criteo Sa.
Diversification Opportunities for Kanzhun and Criteo Sa
Very good diversification
The 3 months correlation between Kanzhun and Criteo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa 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 Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Kanzhun i.e., Kanzhun and Criteo Sa go up and down completely randomly.
Pair Corralation between Kanzhun and Criteo Sa
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Criteo Sa. In addition to that, Kanzhun is 1.22 times more volatile than Criteo Sa. It trades about -0.32 of its total potential returns per unit of risk. Criteo Sa is currently generating about 0.56 per unit of volatility. If you would invest 3,359 in Criteo Sa on August 31, 2024 and sell it today you would earn a total of 875.00 from holding Criteo Sa or generate 26.05% 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. Criteo Sa
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Criteo Sa |
Kanzhun and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Criteo Sa
The main advantage of trading using opposite Kanzhun and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Criteo Sa 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 Criteo Sa will offset losses from the drop in Criteo Sa's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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