Correlation Between Stagwell and Zoomcar Holdings
Can any of the company-specific risk be diversified away by investing in both Stagwell and Zoomcar Holdings 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 Stagwell and Zoomcar Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Zoomcar Holdings, you can compare the effects of market volatilities on Stagwell and Zoomcar Holdings 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 Stagwell with a short position of Zoomcar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Zoomcar Holdings.
Diversification Opportunities for Stagwell and Zoomcar Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stagwell and Zoomcar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Zoomcar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomcar Holdings and Stagwell 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 Stagwell are associated (or correlated) with Zoomcar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomcar Holdings has no effect on the direction of Stagwell i.e., Stagwell and Zoomcar Holdings go up and down completely randomly.
Pair Corralation between Stagwell and Zoomcar Holdings
Given the investment horizon of 90 days Stagwell is expected to under-perform the Zoomcar Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Stagwell is 11.31 times less risky than Zoomcar Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The Zoomcar Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1.89 in Zoomcar Holdings on September 12, 2024 and sell it today you would lose (0.67) from holding Zoomcar Holdings or give up 35.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. Zoomcar Holdings
Performance |
| Timeline |
| Stagwell |
| Zoomcar Holdings |
Stagwell and Zoomcar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Zoomcar Holdings
The main advantage of trading using opposite Stagwell and Zoomcar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, Zoomcar Holdings 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 Zoomcar Holdings will offset losses from the drop in Zoomcar Holdings' long position.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| Zoomcar Holdings vs. Nasdaq Inc | Zoomcar Holdings vs. Alvarium Tiedemann Holdings | Zoomcar Holdings vs. Artisan Partners Asset | Zoomcar Holdings vs. Summit Materials |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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