Correlation Between Zeta Global and DHI
Can any of the company-specific risk be diversified away by investing in both Zeta Global and DHI 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 Zeta Global and DHI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeta Global Holdings and DHI Group, you can compare the effects of market volatilities on Zeta Global and DHI 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 Zeta Global with a short position of DHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeta Global and DHI.
Diversification Opportunities for Zeta Global and DHI
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zeta and DHI is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zeta Global Holdings and DHI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHI Group and Zeta Global 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 Zeta Global Holdings are associated (or correlated) with DHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHI Group has no effect on the direction of Zeta Global i.e., Zeta Global and DHI go up and down completely randomly.
Pair Corralation between Zeta Global and DHI
Given the investment horizon of 90 days Zeta Global Holdings is expected to generate 1.02 times more return on investment than DHI. However, Zeta Global is 1.02 times more volatile than DHI Group. It trades about 0.07 of its potential returns per unit of risk. DHI Group is currently generating about -0.03 per unit of risk. If you would invest 821.00 in Zeta Global Holdings on September 13, 2024 and sell it today you would earn a total of 1,325 from holding Zeta Global Holdings or generate 161.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Zeta Global Holdings vs. DHI Group
Performance |
| Timeline |
| Zeta Global Holdings |
| DHI Group |
Zeta Global and DHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeta Global and DHI
The main advantage of trading using opposite Zeta Global and DHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeta Global position performs unexpectedly, DHI 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 DHI will offset losses from the drop in DHI's long position.| Zeta Global vs. Paycor HCM | Zeta Global vs. Appfolio | Zeta Global vs. Agilysys | Zeta Global vs. PROS Holdings |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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