Correlation Between BYND Cannasoft and Zenvia

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

By analyzing existing cross correlation between BYND Cannasoft Enterprises and Zenvia Inc, you can compare the effects of market volatilities on BYND Cannasoft and Zenvia 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 BYND Cannasoft with a short position of Zenvia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYND Cannasoft and Zenvia.

Diversification Opportunities for BYND Cannasoft and Zenvia

-0.07

Correlation Coefficient

BYND Cannasoft  Zenvia

Good diversification

The 3 months correlation between BYND and Zenvia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding BYND Cannasoft Enterprises and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia Inc and BYND Cannasoft 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 BYND Cannasoft Enterprises are associated (or correlated) with Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of BYND Cannasoft i.e., BYND Cannasoft and Zenvia go up and down completely randomly.

Pair Corralation between BYND Cannasoft and Zenvia

Given the investment horizon of 90 days BYND Cannasoft Enterprises is expected to generate 0.49 times more return on investment than Zenvia. However, BYND Cannasoft Enterprises is 2.03 times less risky than Zenvia. It trades about -0.08 of its potential returns per unit of risk. Zenvia Inc is currently generating about -0.04 per unit of risk. If you would invest  1,091  in BYND Cannasoft Enterprises on September 24, 2024 and sell it today you would lose (301.00) from holding BYND Cannasoft Enterprises or give up 27.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

BYND Cannasoft Enterprises  vs.  Zenvia Inc

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BYND Cannasoft Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BYND Cannasoft is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Zenvia Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zenvia Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Zenvia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BYND Cannasoft and Zenvia

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

The idea behind BYND Cannasoft Enterprises and Zenvia 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.