Correlation Between CVW CleanTech and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech and ZOOZ Power 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 CVW CleanTech and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and ZOOZ Power Ltd, you can compare the effects of market volatilities on CVW CleanTech and ZOOZ Power 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 CVW CleanTech with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and ZOOZ Power.
Diversification Opportunities for CVW CleanTech and ZOOZ Power
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVW and ZOOZ is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and CVW CleanTech 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 CVW CleanTech are associated (or correlated) with ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and ZOOZ Power go up and down completely randomly.
Pair Corralation between CVW CleanTech and ZOOZ Power
Assuming the 90 days horizon CVW CleanTech is expected to generate 17.6 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, CVW CleanTech is 1.26 times less risky than ZOOZ Power. It trades about 0.01 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 203.00 in ZOOZ Power Ltd on October 3, 2024 and sell it today you would earn a total of 42.00 from holding ZOOZ Power Ltd or generate 20.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CVW CleanTech vs. ZOOZ Power Ltd
Performance |
Timeline |
CVW CleanTech |
ZOOZ Power |
CVW CleanTech and ZOOZ Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CVW CleanTech and ZOOZ Power
The main advantage of trading using opposite CVW CleanTech and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.CVW CleanTech vs. Mill City Ventures | CVW CleanTech vs. Bridgford Foods | CVW CleanTech vs. Exchange Bankshares | CVW CleanTech vs. Pintec Technology Holdings |
ZOOZ Power vs. ZOOZ Power Ltd | ZOOZ Power vs. JBDI Holdings Limited | ZOOZ Power vs. Nuvve Holding Corp | ZOOZ Power vs. Creative Global Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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