Correlation Between TrueBlue and Kanzhun

Can any of the company-specific risk be diversified away by investing in both TrueBlue 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 TrueBlue and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TrueBlue and Kanzhun Ltd ADR, you can compare the effects of market volatilities on TrueBlue 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 TrueBlue with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueBlue and Kanzhun.

Diversification Opportunities for TrueBlue and Kanzhun

-0.82

Correlation Coefficient

TrueBlue  Kanzhun

Pay attention - limited upside

The 3 months correlation between TrueBlue and Kanzhun is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue 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 TrueBlue 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 TrueBlue 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 TrueBlue i.e., TrueBlue and Kanzhun go up and down completely randomly.

Pair Corralation between TrueBlue and Kanzhun

Considering the 90-day investment horizon TrueBlue is expected to under-perform the Kanzhun. In addition to that, TrueBlue is 1.37 times more volatile than Kanzhun Ltd ADR. It trades about -0.11 of its total potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about 0.22 per unit of volatility. If you would invest  1,370  in Kanzhun Ltd ADR on December 29, 2024 and sell it today you would earn a total of  636.00  from holding Kanzhun Ltd ADR or generate 46.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

TrueBlue  vs.  Kanzhun Ltd ADR

TrueBlue

Risk-Adjusted Performance

Very Weak

Over the last 90 days TrueBlue has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Kanzhun Ltd ADR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kanzhun Ltd ADR are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kanzhun showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TrueBlue and Kanzhun

The main advantage of trading using opposite TrueBlue and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueBlue 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.

The idea behind TrueBlue and Kanzhun Ltd ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.