Correlation Between Kanzhun and Perion Network
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Perion Network 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 Perion Network 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 Perion Network, you can compare the effects of market volatilities on Kanzhun and Perion Network 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 Perion Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Perion Network.
Diversification Opportunities for Kanzhun and Perion Network
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kanzhun and Perion is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network 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 Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Kanzhun i.e., Kanzhun and Perion Network go up and down completely randomly.
Pair Corralation between Kanzhun and Perion Network
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Perion Network. But the stock apears to be less risky and, when comparing its historical volatility, Kanzhun Ltd ADR is 1.0 times less risky than Perion Network. The stock trades about -0.4 of its potential returns per unit of risk. The Perion Network is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 829.00 in Perion Network on August 27, 2024 and sell it today you would earn a total of 26.00 from holding Perion Network or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Perion Network
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Perion Network |
Kanzhun and Perion Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Perion Network
The main advantage of trading using opposite Kanzhun and Perion Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Perion Network 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 Perion Network will offset losses from the drop in Perion Network's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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