Correlation Between Forza X1 and ZOOZ Power

Can any of the company-specific risk be diversified away by investing in both Forza X1 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 Forza X1 and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Forza X1 and ZOOZ Power Ltd, you can compare the effects of market volatilities on Forza X1 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 Forza X1 with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forza X1 and ZOOZ Power.

Diversification Opportunities for Forza X1 and ZOOZ Power

-0.47

Correlation Coefficient

Forza X1  ZOOZ Power

Very good diversification

The 3 months correlation between Forza and ZOOZ is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Forza X1 and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Forza X1 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 Forza X1 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 Forza X1 i.e., Forza X1 and ZOOZ Power go up and down completely randomly.

Pair Corralation between Forza X1 and ZOOZ Power

If you would invest  24.00  in Forza X1 on September 27, 2024 and sell it today you would earn a total of  0.00  from holding Forza X1 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Forza X1  vs.  ZOOZ Power Ltd

Forza X1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Forza X1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ZOOZ Power

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ZOOZ Power Ltd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, ZOOZ Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Forza X1 and ZOOZ Power

The main advantage of trading using opposite Forza X1 and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forza X1 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.

The idea behind Forza X1 and ZOOZ Power Ltd 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.