Correlation Between Driven Brands and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Driven Brands and ZOOZ Power 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 Driven Brands and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Driven Brands Holdings and ZOOZ Power Ltd, you can compare the effects of market volatilities on Driven Brands and ZOOZ Power 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 Driven Brands with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Driven Brands and ZOOZ Power.
Diversification Opportunities for Driven Brands and ZOOZ Power
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Driven and ZOOZ is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Driven Brands Holdings and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Driven Brands 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 Driven Brands Holdings are associated (or correlated) with ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Driven Brands i.e., Driven Brands and ZOOZ Power go up and down completely randomly.
Pair Corralation between Driven Brands and ZOOZ Power
Given the investment horizon of 90 days Driven Brands is expected to generate 1.09 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, Driven Brands Holdings is 1.33 times less risky than ZOOZ Power. It trades about 0.29 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 241.00 in ZOOZ Power Ltd on August 27, 2024 and sell it today you would earn a total of 40.00 from holding ZOOZ Power Ltd or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Driven Brands Holdings vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Driven Brands Holdings |
| ZOOZ Power |
Driven Brands and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Driven Brands and ZOOZ Power
The main advantage of trading using opposite Driven Brands and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Driven Brands position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.| Driven Brands vs. CarGurus | Driven Brands vs. KAR Auction Services | Driven Brands vs. Kingsway Financial Services | Driven Brands vs. Group 1 Automotive |
| ZOOZ Power vs. Pet Acquisition LLC | ZOOZ Power vs. Ulta Beauty | ZOOZ Power vs. Best Buy Co | ZOOZ Power vs. Dicks Sporting Goods |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |