Correlation Between Zoom Video and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Zoom Video and Oxford Technology 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 Zoom Video and Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and Oxford Technology 2, you can compare the effects of market volatilities on Zoom Video and Oxford Technology 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 Zoom Video with a short position of Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Oxford Technology.
Diversification Opportunities for Zoom Video and Oxford Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zoom and Oxford is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology and Zoom Video 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 Zoom Video Communications are associated (or correlated) with Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Zoom Video i.e., Zoom Video and Oxford Technology go up and down completely randomly.
Pair Corralation between Zoom Video and Oxford Technology
Assuming the 90 days trading horizon Zoom Video Communications is expected to generate 0.74 times more return on investment than Oxford Technology. However, Zoom Video Communications is 1.35 times less risky than Oxford Technology. It trades about 0.07 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.13 per unit of risk. If you would invest 6,390 in Zoom Video Communications on November 3, 2024 and sell it today you would earn a total of 2,423 from holding Zoom Video Communications or generate 37.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Zoom Video Communications vs. Oxford Technology 2
Performance |
| Timeline |
| Zoom Video Communications |
| Oxford Technology |
Zoom Video and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and Oxford Technology
The main advantage of trading using opposite Zoom Video and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Zoom Video vs. Catalyst Media Group | Zoom Video vs. Atresmedia | Zoom Video vs. Mineral Financial Investments | Zoom Video vs. Seraphim Space Investment |
| Oxford Technology vs. Ross Stores | Oxford Technology vs. Cellnex Telecom SA | Oxford Technology vs. Axway Software SA | Oxford Technology vs. JD Sports Fashion |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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