Correlation Between ZOOZ Power and Container Store
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and Container Store 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 Container Store 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 Container Store Group, you can compare the effects of market volatilities on ZOOZ Power and Container Store 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 Container Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and Container Store.
Diversification Opportunities for ZOOZ Power and Container Store
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZOOZ and Container is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and Container Store Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Container Store Group 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 Container Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Container Store Group has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and Container Store go up and down completely randomly.
Pair Corralation between ZOOZ Power and Container Store
Assuming the 90 days horizon ZOOZ Power Ltd is expected to generate 1.41 times more return on investment than Container Store. However, ZOOZ Power is 1.41 times more volatile than Container Store Group. It trades about 0.09 of its potential returns per unit of risk. Container Store Group is currently generating about 0.0 per unit of risk. If you would invest 3.99 in ZOOZ Power Ltd on August 28, 2024 and sell it today you would earn a total of 0.01 from holding ZOOZ Power Ltd or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.13% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. Container Store Group
Performance |
| Timeline |
| ZOOZ Power |
| Container Store Group |
ZOOZ Power and Container Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and Container Store
The main advantage of trading using opposite ZOOZ Power and Container Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, Container Store 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 Container Store will offset losses from the drop in Container Store's long position.| ZOOZ Power vs. Evertz Technologies Limited | ZOOZ Power vs. Valneva SE ADR | ZOOZ Power vs. Analog Devices | ZOOZ Power vs. Anheuser Busch Inbev |
| Container Store vs. Tillys Inc | Container Store vs. Big 5 Sporting | Container Store vs. Sportsmans | Container Store vs. Noodles Company |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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