Correlation Between ZoomInfo Technologies and EGain
Can any of the company-specific risk be diversified away by investing in both ZoomInfo Technologies and EGain 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 EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZoomInfo Technologies and eGain, you can compare the effects of market volatilities on ZoomInfo Technologies and EGain 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 EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZoomInfo Technologies and EGain.
Diversification Opportunities for ZoomInfo Technologies and EGain
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZoomInfo and EGain is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ZoomInfo Technologies and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain 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 EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of ZoomInfo Technologies i.e., ZoomInfo Technologies and EGain go up and down completely randomly.
Pair Corralation between ZoomInfo Technologies and EGain
Allowing for the 90-day total investment horizon ZoomInfo Technologies is expected to under-perform the EGain. In addition to that, ZoomInfo Technologies is 1.12 times more volatile than eGain. It trades about -0.03 of its total potential returns per unit of risk. eGain is currently generating about -0.01 per unit of volatility. If you would invest 940.00 in eGain on November 1, 2024 and sell it today you would lose (282.00) from holding eGain or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ZoomInfo Technologies vs. eGain
Performance |
| Timeline |
| ZoomInfo Technologies |
| eGain |
ZoomInfo Technologies and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZoomInfo Technologies and EGain
The main advantage of trading using opposite ZoomInfo Technologies and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZoomInfo Technologies position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| ZoomInfo Technologies vs. MondayCom | ZoomInfo Technologies vs. Datadog | ZoomInfo Technologies vs. Gitlab Inc | ZoomInfo Technologies vs. HubSpot |
| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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