Correlation Between Ziprecruiter and Kanzhun

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

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

Diversification Opportunities for Ziprecruiter and Kanzhun

0.12

Correlation Coefficient

Ziprecruiter  Kanzhun

Average diversification

The 3 months correlation between Ziprecruiter and Kanzhun is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ziprecruiter 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 Ziprecruiter 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 Ziprecruiter 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 Ziprecruiter i.e., Ziprecruiter and Kanzhun go up and down completely randomly.

Pair Corralation between Ziprecruiter and Kanzhun

Considering the 90-day investment horizon Ziprecruiter is expected to under-perform the Kanzhun. But the stock apears to be less risky and, when comparing its historical volatility, Ziprecruiter is 1.25 times less risky than Kanzhun. The stock trades about -0.16 of its potential returns per unit of risk. The Kanzhun Ltd ADR is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,350  in Kanzhun Ltd ADR on November 28, 2024 and sell it today you would earn a total of  239.00  from holding Kanzhun Ltd ADR or generate 17.7% return on investment over 90 days.

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

Ziprecruiter  vs.  Kanzhun Ltd ADR

Ziprecruiter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ziprecruiter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Kanzhun Ltd ADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kanzhun Ltd ADR are ranked lower than 7 (%) 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 Ziprecruiter and Kanzhun

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

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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.