Correlation Between Agilysys and Zeta Global
Can any of the company-specific risk be diversified away by investing in both Agilysys and Zeta Global 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 Agilysys and Zeta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilysys and Zeta Global Holdings, you can compare the effects of market volatilities on Agilysys and Zeta Global 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 Agilysys with a short position of Zeta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilysys and Zeta Global.
Diversification Opportunities for Agilysys and Zeta Global
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilysys and Zeta is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Agilysys and Zeta Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeta Global Holdings and Agilysys 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 Agilysys are associated (or correlated) with Zeta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeta Global Holdings has no effect on the direction of Agilysys i.e., Agilysys and Zeta Global go up and down completely randomly.
Pair Corralation between Agilysys and Zeta Global
Given the investment horizon of 90 days Agilysys is expected to generate 4.79 times less return on investment than Zeta Global. But when comparing it to its historical volatility, Agilysys is 1.4 times less risky than Zeta Global. It trades about 0.02 of its potential returns per unit of risk. Zeta Global Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 909.00 in Zeta Global Holdings on November 9, 2024 and sell it today you would earn a total of 1,187 from holding Zeta Global Holdings or generate 130.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilysys vs. Zeta Global Holdings
Performance |
| Timeline |
| Agilysys |
| Zeta Global Holdings |
Agilysys and Zeta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilysys and Zeta Global
The main advantage of trading using opposite Agilysys and Zeta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilysys position performs unexpectedly, Zeta Global 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 Zeta Global will offset losses from the drop in Zeta Global's long position.The idea behind Agilysys and Zeta Global Holdings 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.| Zeta Global vs. Paycor HCM | Zeta Global vs. Appfolio | Zeta Global vs. Agilysys | Zeta Global vs. PROS Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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