Correlation Between Kanzhun and Staffing 360

Can any of the company-specific risk be diversified away by investing in both Kanzhun and Staffing 360 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 Staffing 360 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 Staffing 360 Solutions, you can compare the effects of market volatilities on Kanzhun and Staffing 360 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 Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kanzhun and Staffing 360.

Diversification Opportunities for Kanzhun and Staffing 360

-0.37

Correlation Coefficient

Kanzhun  Staffing 360

Very good diversification

The 3 months correlation between Kanzhun and Staffing is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kanzhun Ltd ADR and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions 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 Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Kanzhun i.e., Kanzhun and Staffing 360 go up and down completely randomly.

Pair Corralation between Kanzhun and Staffing 360

Allowing for the 90-day total investment horizon Kanzhun is expected to generate 15.82 times less return on investment than Staffing 360. But when comparing it to its historical volatility, Kanzhun Ltd ADR is 3.25 times less risky than Staffing 360. It trades about 0.01 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  233.00  in Staffing 360 Solutions on August 30, 2024 and sell it today you would earn a total of  7.00  from holding Staffing 360 Solutions or generate 3.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Kanzhun Ltd ADR  vs.  Staffing 360 Solutions

Kanzhun Ltd ADR

Risk-Adjusted Performance

0 of 100

Very Weak

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.

Staffing 360 Solutions

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Staffing 360 Solutions are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Staffing 360 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kanzhun and Staffing 360

The main advantage of trading using opposite Kanzhun and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kanzhun position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.

The idea behind Kanzhun Ltd ADR and Staffing 360 Solutions 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 Stocks Directory module to find actively traded stocks across global markets.