Correlation Between ZOOZ Power and Savers Value
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and Savers Value 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 Savers Value 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 Savers Value Village,, you can compare the effects of market volatilities on ZOOZ Power and Savers Value 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 Savers Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and Savers Value.
Diversification Opportunities for ZOOZ Power and Savers Value
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZOOZ and Savers is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and Savers Value Village, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savers Value Village, 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 Savers Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savers Value Village, has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and Savers Value go up and down completely randomly.
Pair Corralation between ZOOZ Power and Savers Value
Assuming the 90 days horizon ZOOZ Power Ltd is expected to generate 6.38 times more return on investment than Savers Value. However, ZOOZ Power is 6.38 times more volatile than Savers Value Village,. It trades about 0.09 of its potential returns per unit of risk. Savers Value Village, is currently generating about -0.05 per unit of risk. If you would invest 4.50 in ZOOZ Power Ltd on August 24, 2024 and sell it today you would lose (0.50) from holding ZOOZ Power Ltd or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. Savers Value Village,
Performance |
| Timeline |
| ZOOZ Power |
| Savers Value Village, |
ZOOZ Power and Savers Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and Savers Value
The main advantage of trading using opposite ZOOZ Power and Savers Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, Savers Value 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 Savers Value will offset losses from the drop in Savers Value's long position.| ZOOZ Power vs. BJs Restaurants | ZOOZ Power vs. Sweetgreen | ZOOZ Power vs. Wingstop | ZOOZ Power vs. Helmerich and Payne |
| Savers Value vs. Antero Midstream Partners | Savers Value vs. Fortress Transp Infra | Savers Value vs. Mitsubishi UFJ Lease | Savers Value vs. U Haul Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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