Correlation Between ZOOZ Power and ChargePoint Holdings
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and ChargePoint 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 ZOOZ Power and ChargePoint Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZOOZ Power Ltd and ChargePoint Holdings, you can compare the effects of market volatilities on ZOOZ Power and ChargePoint 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 ZOOZ Power with a short position of ChargePoint Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and ChargePoint Holdings.
Diversification Opportunities for ZOOZ Power and ChargePoint Holdings
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZOOZ and ChargePoint is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and ChargePoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePoint Holdings and ZOOZ Power 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 ZOOZ Power Ltd are associated (or correlated) with ChargePoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePoint Holdings has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and ChargePoint Holdings go up and down completely randomly.
Pair Corralation between ZOOZ Power and ChargePoint Holdings
Given the investment horizon of 90 days ZOOZ Power Ltd is expected to generate 0.88 times more return on investment than ChargePoint Holdings. However, ZOOZ Power Ltd is 1.13 times less risky than ChargePoint Holdings. It trades about 0.05 of its potential returns per unit of risk. ChargePoint Holdings is currently generating about -0.03 per unit of risk. If you would invest 234.00 in ZOOZ Power Ltd on August 24, 2024 and sell it today you would earn a total of 43.00 from holding ZOOZ Power Ltd or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. ChargePoint Holdings
Performance |
| Timeline |
| ZOOZ Power |
| ChargePoint Holdings |
ZOOZ Power and ChargePoint Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and ChargePoint Holdings
The main advantage of trading using opposite ZOOZ Power and ChargePoint Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, ChargePoint 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 ChargePoint Holdings will offset losses from the drop in ChargePoint Holdings' long position.| ZOOZ Power vs. NL Industries | ZOOZ Power vs. Advanced Micro Devices | ZOOZ Power vs. Park Electrochemical | ZOOZ Power vs. Kulicke and Soffa |
| ChargePoint Holdings vs. Pet Acquisition LLC | ChargePoint Holdings vs. Ulta Beauty | ChargePoint Holdings vs. Best Buy Co | ChargePoint Holdings vs. Dicks Sporting Goods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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