Correlation Between ZW Data and Troika Media

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

By analyzing existing cross correlation between ZW Data Action and Troika Media Group, you can compare the effects of market volatilities on ZW Data and Troika Media 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 ZW Data with a short position of Troika Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Troika Media.

Diversification Opportunities for ZW Data and Troika Media

0.0

Correlation Coefficient

ZW Data  Troika Media

Pay attention - limited upside

The 3 months correlation between CNET and Troika is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Troika Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troika Media Group and ZW Data 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 ZW Data Action are associated (or correlated) with Troika Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troika Media Group has no effect on the direction of ZW Data i.e., ZW Data and Troika Media go up and down completely randomly.

Pair Corralation between ZW Data and Troika Media

If you would invest (100.00) in Troika Media Group on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Troika Media Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ZW Data Action  vs.  Troika Media Group

ZW Data Action

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZW Data Action 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 technical and fundamental 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.

Troika Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Troika Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Troika Media is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with ZW Data and Troika Media

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

The idea behind ZW Data Action and Troika Media Group 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.