Correlation Between Zoom Video and GivBux
Can any of the company-specific risk be diversified away by investing in both Zoom Video and GivBux 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 GivBux 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 GivBux Inc, you can compare the effects of market volatilities on Zoom Video and GivBux 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 GivBux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and GivBux.
Diversification Opportunities for Zoom Video and GivBux
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zoom and GivBux is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux Inc 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 GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of Zoom Video i.e., Zoom Video and GivBux go up and down completely randomly.
Pair Corralation between Zoom Video and GivBux
Allowing for the 90-day total investment horizon Zoom Video is expected to generate 8.5 times less return on investment than GivBux. But when comparing it to its historical volatility, Zoom Video Communications is 6.49 times less risky than GivBux. It trades about 0.03 of its potential returns per unit of risk. GivBux Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 163.00 in GivBux Inc on September 4, 2024 and sell it today you would lose (88.00) from holding GivBux Inc or give up 53.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Zoom Video Communications vs. GivBux Inc
Performance |
| Timeline |
| Zoom Video Communications |
| GivBux Inc |
Zoom Video and GivBux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and GivBux
The main advantage of trading using opposite Zoom Video and GivBux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, GivBux 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 GivBux will offset losses from the drop in GivBux's long position.| Zoom Video vs. HeartCore Enterprises | Zoom Video vs. Beamr Imaging Ltd | Zoom Video vs. Trust Stamp | Zoom Video vs. CXApp Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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