Correlation Between Kanzhun and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Kanzhun and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment, you can compare the effects of market volatilities on Kanzhun and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Dolphin Entertainment.
Diversification Opportunities for Kanzhun and Dolphin Entertainment
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kanzhun and Dolphin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Kanzhun i.e., Kanzhun and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Kanzhun and Dolphin Entertainment
Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to generate 0.49 times more return on investment than Dolphin Entertainment. However, Kanzhun Ltd ADR is 2.05 times less risky than Dolphin Entertainment. It trades about 0.12 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.18 per unit of risk. If you would invest 2,020 in Kanzhun Ltd ADR on February 28, 2024 and sell it today you would earn a total of 98.00 from holding Kanzhun Ltd ADR or generate 4.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kanzhun Ltd ADR vs. Dolphin Entertainment
Performance |
Timeline |
Kanzhun Ltd ADR |
Dolphin Entertainment |
Kanzhun and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kanzhun and Dolphin Entertainment
The main advantage of trading using opposite Kanzhun and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.Kanzhun vs. Automatic Data Processing | Kanzhun vs. Robert Half International | Kanzhun vs. TrueBlue | Kanzhun vs. TriNet Group |
Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture HoldingLtd | Dolphin Entertainment vs. HUMANA INC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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