Correlation Between ZOOZ Power and Triton International
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and Triton International 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 Triton International 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 Triton International Limited, you can compare the effects of market volatilities on ZOOZ Power and Triton International 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 Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and Triton International.
Diversification Opportunities for ZOOZ Power and Triton International
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZOOZ and Triton is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and Triton International go up and down completely randomly.
Pair Corralation between ZOOZ Power and Triton International
Given the investment horizon of 90 days ZOOZ Power Ltd is expected to generate 6.15 times more return on investment than Triton International. However, ZOOZ Power is 6.15 times more volatile than Triton International Limited. It trades about 0.32 of its potential returns per unit of risk. Triton International Limited is currently generating about 0.32 per unit of risk. If you would invest 245.00 in ZOOZ Power Ltd on September 2, 2024 and sell it today you would earn a total of 53.00 from holding ZOOZ Power Ltd or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. Triton International Limited
Performance |
| Timeline |
| ZOOZ Power |
| Triton International |
ZOOZ Power and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and Triton International
The main advantage of trading using opposite ZOOZ Power and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.| ZOOZ Power vs. Triton International Limited | ZOOZ Power vs. FTAI Aviation Ltd | ZOOZ Power vs. U Haul Holding | ZOOZ Power vs. Lifevantage |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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