Correlation Between Kanzhun and Super League
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Super League 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 Super League 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 Super League Enterprise, you can compare the effects of market volatilities on Kanzhun and Super League 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 Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Super League.
Diversification Opportunities for Kanzhun and Super League
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kanzhun and Super is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise 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 Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of Kanzhun i.e., Kanzhun and Super League go up and down completely randomly.
Pair Corralation between Kanzhun and Super League
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to generate 0.68 times more return on investment than Super League. However, Kanzhun Ltd ADR is 1.47 times less risky than Super League. It trades about 0.04 of its potential returns per unit of risk. Super League Enterprise is currently generating about 0.02 per unit of risk. If you would invest 1,345 in Kanzhun Ltd ADR on October 5, 2024 and sell it today you would earn a total of 19.00 from holding Kanzhun Ltd ADR or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kanzhun Ltd ADR vs. Super League Enterprise
Performance |
Timeline |
Kanzhun Ltd ADR |
Super League Enterprise |
Kanzhun and Super League Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kanzhun and Super League
The main advantage of trading using opposite Kanzhun and Super League positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Super League 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 Super League will offset losses from the drop in Super League's long position.Kanzhun vs. Ziprecruiter | Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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