Correlation Between Zedge and TechTarget
Can any of the company-specific risk be diversified away by investing in both Zedge and TechTarget 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 Zedge and TechTarget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedge Inc and TechTarget, you can compare the effects of market volatilities on Zedge and TechTarget 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 Zedge with a short position of TechTarget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and TechTarget.
Diversification Opportunities for Zedge and TechTarget
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zedge and TechTarget is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc and TechTarget in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget and Zedge 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 Zedge Inc are associated (or correlated) with TechTarget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget has no effect on the direction of Zedge i.e., Zedge and TechTarget go up and down completely randomly.
Pair Corralation between Zedge and TechTarget
Given the investment horizon of 90 days Zedge Inc is expected to generate 1.9 times more return on investment than TechTarget. However, Zedge is 1.9 times more volatile than TechTarget. It trades about 0.04 of its potential returns per unit of risk. TechTarget is currently generating about 0.0 per unit of risk. If you would invest 210.00 in Zedge Inc on August 31, 2024 and sell it today you would earn a total of 58.00 from holding Zedge Inc or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedge Inc vs. TechTarget
Performance |
| Timeline |
| Zedge Inc |
| TechTarget |
Zedge and TechTarget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedge and TechTarget
The main advantage of trading using opposite Zedge and TechTarget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge position performs unexpectedly, TechTarget 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 TechTarget will offset losses from the drop in TechTarget's long position.The idea behind Zedge Inc and TechTarget pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| TechTarget vs. Sabio Holdings | TechTarget vs. Comscore | TechTarget vs. Outbrain | TechTarget vs. Rightmove Plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |