Correlation Between Kanzhun and GEE

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Can any of the company-specific risk be diversified away by investing in both Kanzhun and GEE 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 GEE 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 GEE Group, you can compare the effects of market volatilities on Kanzhun and GEE 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 GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and GEE.

Diversification Opportunities for Kanzhun and GEE

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Kanzhun and GEE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group 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 GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of Kanzhun i.e., Kanzhun and GEE go up and down completely randomly.

Pair Corralation between Kanzhun and GEE

Allowing for the 90-day total investment horizon Kanzhun Ltd ADR is expected to generate 1.19 times more return on investment than GEE. However, Kanzhun is 1.19 times more volatile than GEE Group. It trades about 0.32 of its potential returns per unit of risk. GEE Group is currently generating about 0.09 per unit of risk. If you would invest  2,071  in Kanzhun Ltd ADR on October 30, 2022 and sell it today you would earn a total of  501.00  from holding Kanzhun Ltd ADR or generate 24.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Kanzhun Ltd ADR  vs.  GEE Group

 Performance (%) 
       Timeline  
Kanzhun Ltd ADR 
Kanzhun Performance
22 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Kanzhun Ltd ADR are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Kanzhun showed solid returns over the last few months and may actually be approaching a breakup point.

Kanzhun Price Channel

GEE Group 
GEE Performance
0 of 100
Over the last 90 days GEE Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2023. The current disturbance may also be a sign of long term up-swing for the company investors.

GEE Price Channel

Kanzhun and GEE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kanzhun and GEE

The main advantage of trading using opposite Kanzhun and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.
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The idea behind Kanzhun Ltd ADR and GEE Group 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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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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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