Correlation Between Graphic Packaging and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging 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 Graphic Packaging and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphic Packaging Holding and ZOOZ Power Ltd, you can compare the effects of market volatilities on Graphic Packaging 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 Graphic Packaging with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and ZOOZ Power.
Diversification Opportunities for Graphic Packaging and ZOOZ Power
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphic and ZOOZ is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Graphic Packaging 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 Graphic Packaging Holding 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 Graphic Packaging i.e., Graphic Packaging and ZOOZ Power go up and down completely randomly.
Pair Corralation between Graphic Packaging and ZOOZ Power
Considering the 90-day investment horizon Graphic Packaging Holding is expected to under-perform the ZOOZ Power. But the stock apears to be less risky and, when comparing its historical volatility, Graphic Packaging Holding is 1.92 times less risky than ZOOZ Power. The stock trades about -0.06 of its potential returns per unit of risk. The 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphic Packaging Holding vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Graphic Packaging Holding |
| ZOOZ Power |
Graphic Packaging and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic Packaging and ZOOZ Power
The main advantage of trading using opposite Graphic Packaging and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging 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.| Graphic Packaging vs. International Paper | Graphic Packaging vs. Sonoco Products | Graphic Packaging vs. Reynolds Consumer Products | Graphic Packaging vs. Ball Corporation |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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