Correlation Between HireRight Holdings and Kanzhun
Can any of the company-specific risk be diversified away by investing in both HireRight 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 HireRight Holdings and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HireRight Holdings Corp and Kanzhun Ltd ADR, you can compare the effects of market volatilities on HireRight 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 HireRight Holdings with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of HireRight Holdings and Kanzhun.
Diversification Opportunities for HireRight Holdings and Kanzhun
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HireRight and Kanzhun is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HireRight Holdings Corp 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 HireRight 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 HireRight Holdings Corp 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 HireRight Holdings i.e., HireRight Holdings and Kanzhun go up and down completely randomly.
Pair Corralation between HireRight Holdings and Kanzhun
Considering the 90-day investment horizon HireRight Holdings is expected to generate 89.39 times less return on investment than Kanzhun. But when comparing it to its historical volatility, HireRight Holdings Corp is 14.59 times less risky than Kanzhun. It trades about 0.02 of its potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,026 in Kanzhun Ltd ADR on March 7, 2024 and sell it today you would earn a total of 127.00 from holding Kanzhun Ltd ADR or generate 6.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
HireRight Holdings Corp vs. Kanzhun Ltd ADR
Performance |
Timeline |
HireRight Holdings Corp |
Kanzhun Ltd ADR |
HireRight Holdings and Kanzhun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HireRight Holdings and Kanzhun
The main advantage of trading using opposite HireRight Holdings and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HireRight 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.HireRight Holdings vs. Hudson Global | HireRight Holdings vs. Mastech Holdings | HireRight Holdings vs. Kforce Inc | HireRight Holdings vs. Kelly Services A |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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