Correlation Between GivBux and Zoom Video

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

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

Diversification Opportunities for GivBux and Zoom Video

-0.07

Correlation Coefficient

GivBux  Zoom Video

Good diversification

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

Pair Corralation between GivBux and Zoom Video

Given the investment horizon of 90 days GivBux Inc is expected to generate 8.34 times more return on investment than Zoom Video. However, GivBux is 8.34 times more volatile than Zoom Video Communications. It trades about 0.23 of its potential returns per unit of risk. Zoom Video Communications is currently generating about -0.05 per unit of risk. If you would invest  121.00  in GivBux Inc on December 27, 2024 and sell it today you would earn a total of  526.00  from holding GivBux Inc or generate 434.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

GivBux Inc  vs.  Zoom Video Communications

GivBux Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Zoom Video Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoom Video Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with GivBux and Zoom Video

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

The idea behind GivBux Inc and Zoom Video Communications 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.