Correlation Between ZOOZ Power and City Office
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and City Office 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 City Office 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 City Office REIT, you can compare the effects of market volatilities on ZOOZ Power and City Office 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 City Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and City Office.
Diversification Opportunities for ZOOZ Power and City Office
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZOOZ and City is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and City Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Office REIT 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 City Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Office REIT has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and City Office go up and down completely randomly.
Pair Corralation between ZOOZ Power and City Office
Assuming the 90 days horizon ZOOZ Power Ltd is expected to generate 12.85 times more return on investment than City Office. However, ZOOZ Power is 12.85 times more volatile than City Office REIT. It trades about 0.22 of its potential returns per unit of risk. City Office REIT is currently generating about -0.3 per unit of risk. If you would invest 4.60 in ZOOZ Power Ltd on November 3, 2024 and sell it today you would earn a total of 1.73 from holding ZOOZ Power Ltd or generate 37.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. City Office REIT
Performance |
| Timeline |
| ZOOZ Power |
| City Office REIT |
ZOOZ Power and City Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and City Office
The main advantage of trading using opposite ZOOZ Power and City Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, City Office 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 City Office will offset losses from the drop in City Office's long position.| ZOOZ Power vs. One Group Hospitality | ZOOZ Power vs. Skillz Platform | ZOOZ Power vs. Dine Brands Global | ZOOZ Power vs. Hochschild Mining PLC |
| City Office vs. CVR Energy | City Office vs. Ryanair Holdings PLC | City Office vs. Mesa Air Group | City Office vs. Albertsons Companies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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