Correlation Between ManpowerGroup and Kanzhun
Can any of the company-specific risk be diversified away by investing in both ManpowerGroup and Kanzhun 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 ManpowerGroup and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ManpowerGroup and Kanzhun Ltd ADR, you can compare the effects of market volatilities on ManpowerGroup and Kanzhun 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 ManpowerGroup with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of ManpowerGroup and Kanzhun.
Diversification Opportunities for ManpowerGroup and Kanzhun
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ManpowerGroup and Kanzhun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ManpowerGroup and Kanzhun Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kanzhun Ltd ADR and ManpowerGroup 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 ManpowerGroup are associated (or correlated) with Kanzhun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kanzhun Ltd ADR has no effect on the direction of ManpowerGroup i.e., ManpowerGroup and Kanzhun go up and down completely randomly.
Pair Corralation between ManpowerGroup and Kanzhun
Considering the 90-day investment horizon ManpowerGroup is expected to under-perform the Kanzhun. But the stock apears to be less risky and, when comparing its historical volatility, ManpowerGroup is 2.19 times less risky than Kanzhun. The stock trades about -0.02 of its potential returns per unit of risk. The Kanzhun Ltd ADR is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,868 in Kanzhun Ltd ADR on August 31, 2024 and sell it today you would lose (610.00) from holding Kanzhun Ltd ADR or give up 32.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ManpowerGroup vs. Kanzhun Ltd ADR
Performance |
| Timeline |
| ManpowerGroup |
| Kanzhun Ltd ADR |
ManpowerGroup and Kanzhun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ManpowerGroup and Kanzhun
The main advantage of trading using opposite ManpowerGroup and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ManpowerGroup position performs unexpectedly, Kanzhun 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 Kanzhun will offset losses from the drop in Kanzhun's long position.| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. Heidrick Struggles International | ManpowerGroup vs. Korn Ferry | ManpowerGroup vs. Hudson Global |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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