Correlation Between International Paper and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both International Paper 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 International Paper and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Paper and ZOOZ Power Ltd, you can compare the effects of market volatilities on International Paper 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 International Paper with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Paper and ZOOZ Power.
Diversification Opportunities for International Paper and ZOOZ Power
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and ZOOZ is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding International Paper and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and International Paper 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 International Paper 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 International Paper i.e., International Paper and ZOOZ Power go up and down completely randomly.
Pair Corralation between International Paper and ZOOZ Power
Allowing for the 90-day total investment horizon International Paper is expected to generate 0.42 times more return on investment than ZOOZ Power. However, International Paper is 2.4 times less risky than ZOOZ Power. It trades about 0.12 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about -0.04 per unit of risk. If you would invest 3,246 in International Paper on November 3, 2024 and sell it today you would earn a total of 2,317 from holding International Paper or generate 71.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.87% |
| Values | Daily Returns |
International Paper vs. ZOOZ Power Ltd
Performance |
| Timeline |
| International Paper |
| ZOOZ Power |
International Paper and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Paper and ZOOZ Power
The main advantage of trading using opposite International Paper and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Paper 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.| International Paper vs. Sealed Air | International Paper vs. Avery Dennison Corp | International Paper vs. Sonoco Products | International Paper vs. Ball Corporation |
| ZOOZ Power vs. Ainsworth Game Technology | ZOOZ Power vs. Proficient Auto Logistics, | ZOOZ Power vs. Inflection Point Acquisition | ZOOZ Power vs. GameStop Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |