Correlation Between Zoom Video and Gruppo Mutuionline

Can any of the company-specific risk be diversified away by investing in both Zoom Video and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Zoom Video and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Gruppo Mutuionline.

Diversification Opportunities for Zoom Video and Gruppo Mutuionline

0.73

Correlation Coefficient

Zoom Video  Gruppo Mutuionline

Poor diversification

The 3 months correlation between Zoom and Gruppo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Zoom Video i.e., Zoom Video and Gruppo Mutuionline go up and down completely randomly.

Pair Corralation between Zoom Video and Gruppo Mutuionline

Assuming the 90 days trading horizon Zoom Video Communications is expected to under-perform the Gruppo Mutuionline. In addition to that, Zoom Video is 1.25 times more volatile than Gruppo Mutuionline SpA. It trades about -0.11 of its total potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.02 per unit of volatility. If you would invest  3,610  in Gruppo Mutuionline SpA on December 21, 2024 and sell it today you would lose (100.00) from holding Gruppo Mutuionline SpA or give up 2.77% of portfolio value over 90 days.

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

Zoom Video Communications  vs.  Gruppo Mutuionline SpA

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 unsteady 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.

Gruppo Mutuionline SpA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gruppo Mutuionline SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gruppo Mutuionline is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Zoom Video and Gruppo Mutuionline

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

The idea behind Zoom Video Communications and Gruppo Mutuionline SpA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..