Correlation Between TuanChe ADR and Kanzhun
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR 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 TuanChe ADR and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Kanzhun Ltd ADR, you can compare the effects of market volatilities on TuanChe ADR 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 TuanChe ADR with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Kanzhun.
Diversification Opportunities for TuanChe ADR and Kanzhun
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TuanChe and Kanzhun is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR 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 TuanChe ADR 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 TuanChe ADR 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 TuanChe ADR i.e., TuanChe ADR and Kanzhun go up and down completely randomly.
Pair Corralation between TuanChe ADR and Kanzhun
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Kanzhun. In addition to that, TuanChe ADR is 3.54 times more volatile than Kanzhun Ltd ADR. It trades about -0.15 of its total potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about -0.47 per unit of volatility. If you would invest 1,539 in Kanzhun Ltd ADR on August 30, 2024 and sell it today you would lose (321.00) from holding Kanzhun Ltd ADR or give up 20.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Kanzhun Ltd ADR
Performance |
| Timeline |
| TuanChe ADR |
| Kanzhun Ltd ADR |
TuanChe ADR and Kanzhun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Kanzhun
The main advantage of trading using opposite TuanChe ADR and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR 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.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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