Correlation Between Obayashi and ZW Data

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Can any of the company-specific risk be diversified away by investing in both Obayashi and ZW Data 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 Obayashi and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Obayashi and ZW Data Action, you can compare the effects of market volatilities on Obayashi and ZW Data 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 Obayashi with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Obayashi and ZW Data.

Diversification Opportunities for Obayashi and ZW Data

-0.84
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Obayashi and CNET is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Obayashi and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Obayashi 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 Obayashi are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Obayashi i.e., Obayashi and ZW Data go up and down completely randomly.

Pair Corralation between Obayashi and ZW Data

Assuming the 90 days horizon Obayashi is expected to generate 0.3 times more return on investment than ZW Data. However, Obayashi is 3.38 times less risky than ZW Data. It trades about 0.26 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.06 per unit of risk. If you would invest  1,860  in Obayashi on November 13, 2025 and sell it today you would earn a total of  925.00  from holding Obayashi or generate 49.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy98.36%
ValuesDaily Returns

Obayashi  vs.  ZW Data Action

 Performance 
       Timeline  
Obayashi 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Obayashi are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Obayashi reported solid returns over the last few months and may actually be approaching a breakup point.
ZW Data Action 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in March 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Obayashi and ZW Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Obayashi and ZW Data

The main advantage of trading using opposite Obayashi and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Obayashi position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.
The idea behind Obayashi and ZW Data Action pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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