Correlation Between ODP Corp and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both ODP Corp 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 ODP Corp and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODP Corp and ZOOZ Power Ltd, you can compare the effects of market volatilities on ODP Corp 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 ODP Corp with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODP Corp and ZOOZ Power.
Diversification Opportunities for ODP Corp and ZOOZ Power
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ODP and ZOOZ is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ODP 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 ODP Corp 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 ODP 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 ODP Corp i.e., ODP Corp and ZOOZ Power go up and down completely randomly.
Pair Corralation between ODP Corp and ZOOZ Power
Considering the 90-day investment horizon ODP Corp is expected to under-perform the ZOOZ Power. But the stock apears to be less risky and, when comparing its historical volatility, ODP Corp is 1.03 times less risky than ZOOZ Power. The stock trades about -0.23 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 28, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ODP Corp vs. ZOOZ Power Ltd
Performance |
| Timeline |
| ODP Corp |
| ZOOZ Power |
ODP Corp and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODP Corp and ZOOZ Power
The main advantage of trading using opposite ODP Corp and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODP Corp 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.| ODP Corp vs. Leslies | ODP Corp vs. Sally Beauty Holdings | ODP Corp vs. 1 800 FLOWERSCOM | ODP Corp vs. Caseys General Stores |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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