Correlation Between Kanzhun and Ziprecruiter
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Ziprecruiter 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 Ziprecruiter 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 Ziprecruiter, you can compare the effects of market volatilities on Kanzhun and Ziprecruiter 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 Ziprecruiter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Ziprecruiter.
Diversification Opportunities for Kanzhun and Ziprecruiter
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kanzhun and Ziprecruiter is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Ziprecruiter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziprecruiter 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 Ziprecruiter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziprecruiter has no effect on the direction of Kanzhun i.e., Kanzhun and Ziprecruiter go up and down completely randomly.
Pair Corralation between Kanzhun and Ziprecruiter
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to generate 1.29 times more return on investment than Ziprecruiter. However, Kanzhun is 1.29 times more volatile than Ziprecruiter. It trades about 0.0 of its potential returns per unit of risk. Ziprecruiter is currently generating about -0.02 per unit of risk. If you would invest 1,929 in Kanzhun Ltd ADR on August 27, 2024 and sell it today you would lose (653.00) from holding Kanzhun Ltd ADR or give up 33.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kanzhun Ltd ADR vs. Ziprecruiter
Performance |
| Timeline |
| Kanzhun Ltd ADR |
| Ziprecruiter |
Kanzhun and Ziprecruiter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kanzhun and Ziprecruiter
The main advantage of trading using opposite Kanzhun and Ziprecruiter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Ziprecruiter 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 Ziprecruiter will offset losses from the drop in Ziprecruiter's long position.| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
| Ziprecruiter vs. Kforce Inc | Ziprecruiter vs. Kelly Services A | Ziprecruiter vs. Heidrick Struggles International | Ziprecruiter vs. ManpowerGroup |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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