Correlation Between Kanzhun and Dril Quip
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Dril Quip 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 Dril Quip 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 Dril Quip, you can compare the effects of market volatilities on Kanzhun and Dril Quip 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 Dril Quip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Dril Quip.
Diversification Opportunities for Kanzhun and Dril Quip
Good diversification
The 3 months correlation between Kanzhun and Dril is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Dril Quip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dril Quip 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 Dril Quip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dril Quip has no effect on the direction of Kanzhun i.e., Kanzhun and Dril Quip go up and down completely randomly.
Pair Corralation between Kanzhun and Dril Quip
Allowing for the 90-day total investment horizon Kanzhun is expected to generate 1.19 times less return on investment than Dril Quip. In addition to that, Kanzhun is 1.96 times more volatile than Dril Quip. It trades about 0.06 of its total potential returns per unit of risk. Dril Quip is currently generating about 0.13 per unit of volatility. If you would invest 1,563 in Dril Quip on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Dril Quip or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.38% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Dril Quip
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Dril Quip |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Kanzhun and Dril Quip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Dril Quip
The main advantage of trading using opposite Kanzhun and Dril Quip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Dril Quip 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 Dril Quip will offset losses from the drop in Dril Quip's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| Dril Quip vs. MRC Global | Dril Quip vs. NOV Inc | Dril Quip vs. Ranger Energy Services | Dril Quip vs. Helix Energy Solutions |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |