Correlation Between Sally Beauty and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Sally Beauty 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 Sally Beauty and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sally Beauty Holdings and ZOOZ Power Ltd, you can compare the effects of market volatilities on Sally Beauty 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 Sally Beauty with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sally Beauty and ZOOZ Power.
Diversification Opportunities for Sally Beauty and ZOOZ Power
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sally and ZOOZ is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sally Beauty Holdings and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Sally Beauty 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 Sally Beauty Holdings 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 Sally Beauty i.e., Sally Beauty and ZOOZ Power go up and down completely randomly.
Pair Corralation between Sally Beauty and ZOOZ Power
Considering the 90-day investment horizon Sally Beauty Holdings is expected to generate 0.61 times more return on investment than ZOOZ Power. However, Sally Beauty Holdings is 1.63 times less risky than ZOOZ Power. It trades about 0.05 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about -0.02 per unit of risk. If you would invest 987.00 in Sally Beauty Holdings on August 24, 2024 and sell it today you would earn a total of 326.00 from holding Sally Beauty Holdings or generate 33.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.06% |
| Values | Daily Returns |
Sally Beauty Holdings vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Sally Beauty Holdings |
| ZOOZ Power |
Sally Beauty and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sally Beauty and ZOOZ Power
The main advantage of trading using opposite Sally Beauty and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sally Beauty 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.| Sally Beauty vs. Leslies | Sally Beauty vs. National Vision Holdings | Sally Beauty vs. Sportsmans | Sally Beauty vs. MarineMax |
| ZOOZ Power vs. ODP Corp | ZOOZ Power vs. Sally Beauty Holdings | ZOOZ Power vs. Savers Value Village, | ZOOZ Power vs. Container Store Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |