Correlation Between Nuvve Holding and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Nuvve Holding 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 Nuvve Holding and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvve Holding Corp and ZOOZ Power Ltd, you can compare the effects of market volatilities on Nuvve Holding 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 Nuvve Holding with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvve Holding and ZOOZ Power.
Diversification Opportunities for Nuvve Holding and ZOOZ Power
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuvve and ZOOZ is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nuvve Holding Corp and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Nuvve Holding 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 Nuvve Holding Corp 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 Nuvve Holding i.e., Nuvve Holding and ZOOZ Power go up and down completely randomly.
Pair Corralation between Nuvve Holding and ZOOZ Power
Given the investment horizon of 90 days Nuvve Holding Corp is expected to under-perform the ZOOZ Power. In addition to that, Nuvve Holding is 1.54 times more volatile than ZOOZ Power Ltd. It trades about -0.05 of its total potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.24 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvve Holding Corp vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Nuvve Holding Corp |
| ZOOZ Power |
Nuvve Holding and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvve Holding and ZOOZ Power
The main advantage of trading using opposite Nuvve Holding and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvve Holding 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.| Nuvve Holding vs. ChargePoint Holdings | Nuvve Holding vs. Pet Acquisition LLC | Nuvve Holding vs. Ulta Beauty | Nuvve Holding vs. Best Buy Co |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |