Correlation Between Zebra Technologies and Intevac
Can any of the company-specific risk be diversified away by investing in both Zebra Technologies and Intevac 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 Zebra Technologies and Intevac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and Intevac, you can compare the effects of market volatilities on Zebra Technologies and Intevac 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 Zebra Technologies with a short position of Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and Intevac.
Diversification Opportunities for Zebra Technologies and Intevac
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zebra and Intevac is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and Zebra Technologies 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 Zebra Technologies are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Zebra Technologies i.e., Zebra Technologies and Intevac go up and down completely randomly.
Pair Corralation between Zebra Technologies and Intevac
Given the investment horizon of 90 days Zebra Technologies is expected to generate 0.25 times more return on investment than Intevac. However, Zebra Technologies is 4.07 times less risky than Intevac. It trades about 0.2 of its potential returns per unit of risk. Intevac is currently generating about -0.14 per unit of risk. If you would invest 38,389 in Zebra Technologies on August 31, 2024 and sell it today you would earn a total of 2,186 from holding Zebra Technologies or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zebra Technologies vs. Intevac
Performance |
| Timeline |
| Zebra Technologies |
| Intevac |
Zebra Technologies and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zebra Technologies and Intevac
The main advantage of trading using opposite Zebra Technologies and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| Zebra Technologies vs. Credo Technology Group | Zebra Technologies vs. Ubiquiti Networks | Zebra Technologies vs. Ciena Corp | Zebra Technologies vs. Clearfield |
| Intevac vs. Innovative Solutions and | Intevac vs. Heidrick Struggles International | Intevac vs. ICF International | Intevac vs. PDF Solutions |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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