Correlation Between 51Job Inc and Kanzhun

By analyzing existing cross correlation between 51Job Inc ADR and Kanzhun Ltd ADR, you can compare the effects of market volatilities on 51Job Inc 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 51Job Inc with a short position of Kanzhun. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Job Inc and Kanzhun.

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Can any of the company-specific risk be diversified away by investing in both 51Job Inc 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 51Job Inc and Kanzhun into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for 51Job Inc and Kanzhun

0.12
  Correlation Coefficient
51Job Inc ADR
Kanzhun Ltd ADR

Average diversification

The 3 months correlation between 51Job and Kanzhun is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding 51Job Inc ADR 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 51Job Inc 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 51Job Inc ADR 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 51Job Inc i.e., 51Job Inc and Kanzhun go up and down completely randomly.

Pair Corralation between 51Job Inc and Kanzhun

Given the investment horizon of 90 days 51Job Inc ADR is expected to under-perform the Kanzhun. In addition to that, 51Job Inc is 1.08 times more volatile than Kanzhun Ltd ADR. It trades about -0.19 of its total potential returns per unit of risk. Kanzhun Ltd ADR is currently generating about -0.01 per unit of volatility. If you would invest  3,686  in Kanzhun Ltd ADR on August 31, 2021 and sell it today you would lose (163.00)  from holding Kanzhun Ltd ADR or give up 4.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

51Job Inc ADR  vs.  Kanzhun Ltd ADR

 Performance (%) 
      Timeline 
51Job Inc ADR 
51Job Performance
0 of 100
Over the last 90 days 51Job Inc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in December 2021. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

51Job Price Channel

Kanzhun Ltd ADR 
Kanzhun Performance
0 of 100
Over the last 90 days Kanzhun Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Kanzhun is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Kanzhun Price Channel

51Job Inc and Kanzhun Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with 51Job Inc and Kanzhun

The main advantage of trading using opposite 51Job Inc and Kanzhun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Job Inc 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.

51Job Inc ADR

Pair trading matchups for 51Job Inc

The idea behind 51Job Inc ADR 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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