Correlation Between Recruit Holdings and Kanzhun
Can any of the company-specific risk be diversified away by investing in both Recruit Holdings 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 Recruit Holdings and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Recruit Holdings Co and Kanzhun Ltd ADR, you can compare the effects of market volatilities on Recruit Holdings 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 Recruit Holdings with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recruit Holdings and Kanzhun.
Diversification Opportunities for Recruit Holdings and Kanzhun
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Recruit and Kanzhun is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Recruit Holdings Co 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 Recruit Holdings 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 Recruit Holdings Co 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 Recruit Holdings i.e., Recruit Holdings and Kanzhun go up and down completely randomly.
Pair Corralation between Recruit Holdings and Kanzhun
Assuming the 90 days horizon Recruit Holdings Co is expected to generate 0.99 times more return on investment than Kanzhun. However, Recruit Holdings Co is 1.01 times less risky than Kanzhun. It trades about 0.17 of its potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about 0.13 per unit of risk. If you would invest 6,765 in Recruit Holdings Co on September 15, 2024 and sell it today you would earn a total of 895.00 from holding Recruit Holdings Co or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Recruit Holdings Co vs. Kanzhun Ltd ADR
Performance |
| Timeline |
| Recruit Holdings |
| Kanzhun Ltd ADR |
Recruit Holdings and Kanzhun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Recruit Holdings and Kanzhun
The main advantage of trading using opposite Recruit Holdings and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Recruit Holdings 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.| Recruit Holdings vs. Randstad Holdings NV | Recruit Holdings vs. TechnoPro Holdings | Recruit Holdings vs. GEE Group | Recruit Holdings vs. Labor Smart |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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