Correlation Between Outbrain and Kanzhun
Can any of the company-specific risk be diversified away by investing in both Outbrain 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 Outbrain and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Kanzhun Ltd ADR, you can compare the effects of market volatilities on Outbrain 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 Outbrain with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Kanzhun.
Diversification Opportunities for Outbrain and Kanzhun
Very good diversification
The 3 months correlation between Outbrain and Kanzhun is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain 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 Outbrain 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 Outbrain 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 Outbrain i.e., Outbrain and Kanzhun go up and down completely randomly.
Pair Corralation between Outbrain and Kanzhun
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.69 times more return on investment than Kanzhun. However, Outbrain is 1.44 times less risky than Kanzhun. It trades about 0.08 of its potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about -0.05 per unit of risk. If you would invest 466.00 in Outbrain on August 26, 2024 and sell it today you would earn a total of 39.00 from holding Outbrain or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. Kanzhun Ltd ADR
Performance |
| Timeline |
| Outbrain |
| Kanzhun Ltd ADR |
Outbrain and Kanzhun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Kanzhun
The main advantage of trading using opposite Outbrain and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain 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.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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