Correlation Between ZeroFox Holdings and Stem
Can any of the company-specific risk be diversified away by investing in both ZeroFox Holdings and Stem 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 ZeroFox Holdings and Stem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZeroFox Holdings and Stem Inc, you can compare the effects of market volatilities on ZeroFox Holdings and Stem 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 ZeroFox Holdings with a short position of Stem. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZeroFox Holdings and Stem.
Diversification Opportunities for ZeroFox Holdings and Stem
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between ZeroFox and Stem is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ZeroFox Holdings and Stem Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stem Inc and ZeroFox Holdings 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 ZeroFox Holdings are associated (or correlated) with Stem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stem Inc has no effect on the direction of ZeroFox Holdings i.e., ZeroFox Holdings and Stem go up and down completely randomly.
Pair Corralation between ZeroFox Holdings and Stem
If you would invest 32.00 in Stem Inc on October 22, 2024 and sell it today you would earn a total of 38.10 from holding Stem Inc or generate 119.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
ZeroFox Holdings vs. Stem Inc
Performance |
| Timeline |
| ZeroFox Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stem Inc |
ZeroFox Holdings and Stem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZeroFox Holdings and Stem
The main advantage of trading using opposite ZeroFox Holdings and Stem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZeroFox Holdings position performs unexpectedly, Stem 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 Stem will offset losses from the drop in Stem's long position.| ZeroFox Holdings vs. Hub Cyber Security | ZeroFox Holdings vs. authID Inc | ZeroFox Holdings vs. VirnetX Holding Corp | ZeroFox Holdings vs. Aurora Mobile |
| Stem vs. Palo Alto Networks | Stem vs. Crowdstrike Holdings | Stem vs. Cloudflare | Stem vs. Palantir Technologies Class |
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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