Correlation Between Zoom Video and Ngx Energy
Can any of the company-specific risk be diversified away by investing in both Zoom Video and Ngx Energy 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 Zoom Video and Ngx Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and Ngx Energy International, you can compare the effects of market volatilities on Zoom Video and Ngx Energy 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 Zoom Video with a short position of Ngx Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Ngx Energy.
Diversification Opportunities for Zoom Video and Ngx Energy
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zoom and Ngx is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Ngx Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngx Energy International and Zoom Video 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 Zoom Video Communications are associated (or correlated) with Ngx Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngx Energy International has no effect on the direction of Zoom Video i.e., Zoom Video and Ngx Energy go up and down completely randomly.
Pair Corralation between Zoom Video and Ngx Energy
Allowing for the 90-day total investment horizon Zoom Video is expected to generate 2.29 times less return on investment than Ngx Energy. But when comparing it to its historical volatility, Zoom Video Communications is 2.59 times less risky than Ngx Energy. It trades about 0.03 of its potential returns per unit of risk. Ngx Energy International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 73.00 in Ngx Energy International on August 29, 2024 and sell it today you would lose (7.00) from holding Ngx Energy International or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoom Video Communications vs. Ngx Energy International
Performance |
| Timeline |
| Zoom Video Communications |
| Ngx Energy International |
Zoom Video and Ngx Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and Ngx Energy
The main advantage of trading using opposite Zoom Video and Ngx Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, Ngx Energy 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 Ngx Energy will offset losses from the drop in Ngx Energy's long position.| Zoom Video vs. Marin Software | Zoom Video vs. EzFill Holdings | Zoom Video vs. Trust Stamp | Zoom Video vs. Infobird Co |
| Ngx Energy vs. Permian Resources | Ngx Energy vs. Devon Energy | Ngx Energy vs. EOG Resources | Ngx Energy vs. Coterra Energy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |