Correlation Between Kanzhun and Phoenix New
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Phoenix New 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 Phoenix New 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 Phoenix New Media, you can compare the effects of market volatilities on Kanzhun and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Phoenix New.
Diversification Opportunities for Kanzhun and Phoenix New
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kanzhun and Phoenix is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Kanzhun i.e., Kanzhun and Phoenix New go up and down completely randomly.
Pair Corralation between Kanzhun and Phoenix New
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Phoenix New. But the stock apears to be less risky and, when comparing its historical volatility, Kanzhun Ltd ADR is 2.46 times less risky than Phoenix New. The stock trades about -0.47 of its potential returns per unit of risk. The Phoenix New Media is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Phoenix New Media on August 30, 2024 and sell it today you would lose (29.00) from holding Phoenix New Media or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Phoenix New Media
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Phoenix New Media |
Kanzhun and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Phoenix New
The main advantage of trading using opposite Kanzhun and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New'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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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