Correlation Between ZOOZ Power and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power and ZOOZ Power 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 ZOOZ Power 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 ZOOZ Power Ltd, you can compare the effects of market volatilities on ZOOZ Power and ZOOZ Power 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 ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and ZOOZ Power.
Diversification Opportunities for ZOOZ Power and ZOOZ Power
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZOOZ and ZOOZ is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power 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 ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and ZOOZ Power go up and down completely randomly.
Pair Corralation between ZOOZ Power and ZOOZ Power
Assuming the 90 days horizon ZOOZ Power Ltd is expected to generate 4.06 times more return on investment than ZOOZ Power. However, ZOOZ Power is 4.06 times more volatile than ZOOZ Power Ltd. It trades about 0.08 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about -0.03 per unit of risk. If you would invest 9.99 in ZOOZ Power Ltd on October 23, 2024 and sell it today you would lose (3.92) from holding ZOOZ Power Ltd or give up 39.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.44% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. ZOOZ Power Ltd
Performance |
| Timeline |
| ZOOZ Power |
| ZOOZ Power |
ZOOZ Power and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and ZOOZ Power
The main advantage of trading using opposite ZOOZ Power and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.| ZOOZ Power vs. British American Tobacco | ZOOZ Power vs. U Haul Holding | ZOOZ Power vs. Turning Point Brands | ZOOZ Power vs. Boston Beer |
| ZOOZ Power vs. GE Vernova LLC | ZOOZ Power vs. Senmiao Technology | ZOOZ Power vs. Western Digital | ZOOZ Power vs. Schweiter Technologies AG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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