Correlation Between Zoom Video and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Zoom Video and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Zoom Video and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and AM EAGLE.
Diversification Opportunities for Zoom Video and AM EAGLE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zoom and AFG is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Zoom Video i.e., Zoom Video and AM EAGLE go up and down completely randomly.
Pair Corralation between Zoom Video and AM EAGLE
Assuming the 90 days trading horizon Zoom Video is expected to generate 1.97 times less return on investment than AM EAGLE. But when comparing it to its historical volatility, Zoom Video Communications is 1.23 times less risky than AM EAGLE. It trades about 0.04 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,051 in AM EAGLE OUTFITTERS on August 31, 2024 and sell it today you would earn a total of 759.00 from holding AM EAGLE OUTFITTERS or generate 72.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoom Video Communications vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Zoom Video Communications |
| AM EAGLE OUTFITTERS |
Zoom Video and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and AM EAGLE
The main advantage of trading using opposite Zoom Video and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Zoom Video vs. GAMESTOP | Zoom Video vs. GEAR4MUSIC LS 10 | Zoom Video vs. International Game Technology | Zoom Video vs. TROPHY GAMES DEV |
| AM EAGLE vs. Gaztransport Technigaz SA | AM EAGLE vs. Zoom Video Communications | AM EAGLE vs. BII Railway Transportation | AM EAGLE vs. Warner Music Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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