Correlation Between Zoom Video and JINS HOLDINGS

Can any of the company-specific risk be diversified away by investing in both Zoom Video and JINS HOLDINGS 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 Zoom Video and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zoom Video Communications and JINS HOLDINGS INC, you can compare the effects of market volatilities on Zoom Video and JINS HOLDINGS 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 Zoom Video with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and JINS HOLDINGS.

Diversification Opportunities for Zoom Video and JINS HOLDINGS

0.22

Correlation Coefficient

Zoom Video  JINS HOLDINGS

Modest diversification

The 3 months correlation between Zoom and JINS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and Zoom Video 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 Zoom Video Communications are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of Zoom Video i.e., Zoom Video and JINS HOLDINGS go up and down completely randomly.

Pair Corralation between Zoom Video and JINS HOLDINGS

Assuming the 90 days trading horizon Zoom Video Communications is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, Zoom Video Communications is 1.02 times less risky than JINS HOLDINGS. The stock trades about -0.12 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  3,987  in JINS HOLDINGS INC on December 20, 2024 and sell it today you would earn a total of  13.00  from holding JINS HOLDINGS INC or generate 0.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Zoom Video Communications  vs.  JINS HOLDINGS INC

Zoom Video Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoom Video Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

JINS HOLDINGS INC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JINS HOLDINGS INC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, JINS HOLDINGS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Zoom Video and JINS HOLDINGS

The main advantage of trading using opposite Zoom Video and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.

The idea behind Zoom Video Communications and JINS HOLDINGS INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.