Correlation Between Kanzhun and Hello
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Hello 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 Hello 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 Hello Group, you can compare the effects of market volatilities on Kanzhun and Hello 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 Hello. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Hello.
Diversification Opportunities for Kanzhun and Hello
Almost no diversification
The 3 months correlation between Kanzhun and Hello is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group 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 Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of Kanzhun i.e., Kanzhun and Hello go up and down completely randomly.
Pair Corralation between Kanzhun and Hello
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Hello. In addition to that, Kanzhun is 1.23 times more volatile than Hello Group. It trades about -0.01 of its total potential returns per unit of risk. Hello Group is currently generating about 0.02 per unit of volatility. If you would invest 606.00 in Hello Group on August 24, 2024 and sell it today you would earn a total of 32.00 from holding Hello Group or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Hello Group
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Hello Group |
Kanzhun and Hello Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Hello
The main advantage of trading using opposite Kanzhun and Hello positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Hello 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 Hello will offset losses from the drop in Hello's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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