Correlation Between Kanzhun and TrueBlue
Can any of the company-specific risk be diversified away by investing in both Kanzhun and TrueBlue 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 TrueBlue 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 TrueBlue, you can compare the effects of market volatilities on Kanzhun and TrueBlue 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 TrueBlue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and TrueBlue.
Diversification Opportunities for Kanzhun and TrueBlue
Good diversification
The 3 months correlation between Kanzhun and TrueBlue is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue 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 TrueBlue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueBlue has no effect on the direction of Kanzhun i.e., Kanzhun and TrueBlue go up and down completely randomly.
Pair Corralation between Kanzhun and TrueBlue
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to under-perform the TrueBlue. But the stock apears to be less risky and, when comparing its historical volatility, Kanzhun Ltd ADR is 1.42 times less risky than TrueBlue. The stock trades about -0.32 of its potential returns per unit of risk. The TrueBlue is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 756.00 in TrueBlue on August 31, 2024 and sell it today you would lose (1.00) from holding TrueBlue or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. TrueBlue
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| TrueBlue |
Kanzhun and TrueBlue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and TrueBlue
The main advantage of trading using opposite Kanzhun and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, TrueBlue 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 TrueBlue will offset losses from the drop in TrueBlue's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| TrueBlue vs. Heidrick Struggles International | TrueBlue vs. ManpowerGroup | TrueBlue vs. Korn Ferry | TrueBlue vs. Hudson Global |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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