Correlation Between Zoom Video and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Zoom Video and Mapletree Logistics 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 Mapletree Logistics 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 Mapletree Logistics Trust, you can compare the effects of market volatilities on Zoom Video and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Mapletree Logistics.
Diversification Opportunities for Zoom Video and Mapletree Logistics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zoom and Mapletree is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Zoom Video i.e., Zoom Video and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Zoom Video and Mapletree Logistics
Allowing for the 90-day total investment horizon Zoom Video Communications is expected to generate 0.65 times more return on investment than Mapletree Logistics. However, Zoom Video Communications is 1.55 times less risky than Mapletree Logistics. It trades about 0.13 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about 0.02 per unit of risk. If you would invest 6,134 in Zoom Video Communications on August 29, 2024 and sell it today you would earn a total of 2,402 from holding Zoom Video Communications or generate 39.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Zoom Video Communications vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Zoom Video Communications |
| Mapletree Logistics Trust |
Zoom Video and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and Mapletree Logistics
The main advantage of trading using opposite Zoom Video and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Zoom Video vs. Marin Software | Zoom Video vs. EzFill Holdings | Zoom Video vs. Trust Stamp | Zoom Video vs. Infobird Co |
| Mapletree Logistics vs. CapitaLand Investment Limited | Mapletree Logistics vs. Cumberland Pharmaceuticals | Mapletree Logistics vs. Comstock Holding Companies | Mapletree Logistics vs. Viemed Healthcare |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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