Correlation Between BBTV Holdings and Zoomd Technologies

Can any of the company-specific risk be diversified away by investing in both BBTV Holdings and Zoomd Technologies 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 BBTV Holdings and Zoomd Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BBTV Holdings and Zoomd Technologies, you can compare the effects of market volatilities on BBTV Holdings and Zoomd Technologies 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 BBTV Holdings with a short position of Zoomd Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBTV Holdings and Zoomd Technologies.

Diversification Opportunities for BBTV Holdings and Zoomd Technologies

-0.35

Correlation Coefficient

BBTV Holdings  Zoomd Technologies

Very good diversification

The 3 months correlation between BBTV and Zoomd is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding BBTV Holdings and Zoomd Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomd Technologies and BBTV Holdings 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 BBTV Holdings are associated (or correlated) with Zoomd Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomd Technologies has no effect on the direction of BBTV Holdings i.e., BBTV Holdings and Zoomd Technologies go up and down completely randomly.

Pair Corralation between BBTV Holdings and Zoomd Technologies

If you would invest  28.00  in Zoomd Technologies on September 3, 2024 and sell it today you would earn a total of  24.00  from holding Zoomd Technologies or generate 85.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

BBTV Holdings  vs.  Zoomd Technologies

BBTV Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BBTV Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BBTV Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Zoomd Technologies

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zoomd Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Zoomd Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BBTV Holdings and Zoomd Technologies

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

The idea behind BBTV Holdings and Zoomd Technologies 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.