Correlation Between Savers Value and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Savers Value 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 Savers Value and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and ZOOZ Power Ltd, you can compare the effects of market volatilities on Savers Value 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 Savers Value with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and ZOOZ Power.
Diversification Opportunities for Savers Value and ZOOZ Power
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Savers and ZOOZ is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Savers Value 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 Savers Value Village, 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 Savers Value i.e., Savers Value and ZOOZ Power go up and down completely randomly.
Pair Corralation between Savers Value and ZOOZ Power
Considering the 90-day investment horizon Savers Value Village, is expected to under-perform the ZOOZ Power. But the stock apears to be less risky and, when comparing its historical volatility, Savers Value Village, is 5.51 times less risky than ZOOZ Power. The stock trades about -0.05 of its potential returns per unit of risk. The ZOOZ Power Ltd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9.99 in ZOOZ Power Ltd on August 28, 2024 and sell it today you would lose (5.99) from holding ZOOZ Power Ltd or give up 59.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.34% |
| Values | Daily Returns |
Savers Value Village, vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Savers Value Village, |
| ZOOZ Power |
Savers Value and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and ZOOZ Power
The main advantage of trading using opposite Savers Value and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value 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.| Savers Value vs. Yuexiu Transport Infrastructure | Savers Value vs. Encore Capital Group | Savers Value vs. KeyCorp | Savers Value vs. ACG Metals Limited |
| ZOOZ Power vs. Evertz Technologies Limited | ZOOZ Power vs. Valneva SE ADR | ZOOZ Power vs. Analog Devices | ZOOZ Power vs. Anheuser Busch Inbev |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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