Correlation Between ZoomInfo Technologies and Bigcommerce Holdings
Can any of the company-specific risk be diversified away by investing in both ZoomInfo Technologies and Bigcommerce Holdings 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 ZoomInfo Technologies and Bigcommerce Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZoomInfo Technologies and Bigcommerce Holdings, you can compare the effects of market volatilities on ZoomInfo Technologies and Bigcommerce Holdings 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 ZoomInfo Technologies with a short position of Bigcommerce Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZoomInfo Technologies and Bigcommerce Holdings.
Diversification Opportunities for ZoomInfo Technologies and Bigcommerce Holdings
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZoomInfo and Bigcommerce is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ZoomInfo Technologies and Bigcommerce Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bigcommerce Holdings and ZoomInfo 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 ZoomInfo Technologies are associated (or correlated) with Bigcommerce Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bigcommerce Holdings has no effect on the direction of ZoomInfo Technologies i.e., ZoomInfo Technologies and Bigcommerce Holdings go up and down completely randomly.
Pair Corralation between ZoomInfo Technologies and Bigcommerce Holdings
Allowing for the 90-day total investment horizon ZoomInfo Technologies is expected to under-perform the Bigcommerce Holdings. But the stock apears to be less risky and, when comparing its historical volatility, ZoomInfo Technologies is 1.04 times less risky than Bigcommerce Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Bigcommerce Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 927.00 in Bigcommerce Holdings on September 2, 2024 and sell it today you would lose (190.00) from holding Bigcommerce Holdings or give up 20.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZoomInfo Technologies vs. Bigcommerce Holdings
Performance |
| Timeline |
| ZoomInfo Technologies |
| Bigcommerce Holdings |
ZoomInfo Technologies and Bigcommerce Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZoomInfo Technologies and Bigcommerce Holdings
The main advantage of trading using opposite ZoomInfo Technologies and Bigcommerce Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZoomInfo Technologies position performs unexpectedly, Bigcommerce Holdings 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 Bigcommerce Holdings will offset losses from the drop in Bigcommerce Holdings' long position.| ZoomInfo Technologies vs. MondayCom | ZoomInfo Technologies vs. Datadog | ZoomInfo Technologies vs. Gitlab Inc | ZoomInfo Technologies vs. HubSpot |
| Bigcommerce Holdings vs. nCino Inc | Bigcommerce Holdings vs. ZoomInfo Technologies | Bigcommerce Holdings vs. Gitlab Inc | Bigcommerce Holdings vs. MondayCom |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |