Correlation Between NYSE Composite and Zeta Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Zeta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Zeta Global Holdings, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Zeta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Zeta Global.
Diversification Opportunities for NYSE Composite and Zeta Global
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Zeta is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Zeta Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Zeta Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.45 times less return on investment than Zeta Global. But when comparing it to its historical volatility, NYSE Composite is 5.5 times less risky than Zeta Global. It trades about 0.08 of its potential returns per unit of risk. Zeta Global Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Zeta Global Holdings on August 31, 2024 and sell it today you would earn a total of 1,154 from holding Zeta Global Holdings or generate 133.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
NYSE Composite vs. Zeta Global Holdings
Performance |
| Timeline |
NYSE Composite and Zeta Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Zeta Global Holdings
Pair trading matchups for Zeta Global
Pair Trading with NYSE Composite and Zeta Global
The main advantage of trading using opposite NYSE Composite and Zeta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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