Correlation Between Kanzhun and Shenandoah Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co, you can compare the effects of market volatilities on Kanzhun and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Shenandoah Telecommunicatio.
Diversification Opportunities for Kanzhun and Shenandoah Telecommunicatio
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kanzhun and Shenandoah is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of Kanzhun i.e., Kanzhun and Shenandoah Telecommunicatio go up and down completely randomly.
Pair Corralation between Kanzhun and Shenandoah Telecommunicatio
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the Shenandoah Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Kanzhun Ltd ADR is 1.06 times less risky than Shenandoah Telecommunicatio. The stock trades about -0.05 of its potential returns per unit of risk. The Shenandoah Telecommunications Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,448 in Shenandoah Telecommunications Co on August 26, 2024 and sell it today you would lose (122.00) from holding Shenandoah Telecommunications Co or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Shenandoah Telecommunications
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Shenandoah Telecommunicatio |
Kanzhun and Shenandoah Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Shenandoah Telecommunicatio
The main advantage of trading using opposite Kanzhun and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| Shenandoah Telecommunicatio vs. Anterix | Shenandoah Telecommunicatio vs. Liberty Broadband Corp | Shenandoah Telecommunicatio vs. Ooma Inc | Shenandoah Telecommunicatio vs. IDT Corporation |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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