Correlation Between Thayer Ventures and Zebra Technologies

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

By analyzing existing cross correlation between Thayer Ventures Acquisition and Zebra Technologies, you can compare the effects of market volatilities on Thayer Ventures and Zebra Technologies 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 Thayer Ventures with a short position of Zebra Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Zebra Technologies.

Diversification Opportunities for Thayer Ventures and Zebra Technologies

-0.38

Correlation Coefficient

Thayer Ventures  Zebra Technologies

Very good diversification

The 3 months correlation between Thayer and Zebra is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Zebra Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zebra Technologies and Thayer Ventures 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 Thayer Ventures Acquisition are associated (or correlated) with Zebra Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zebra Technologies has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Zebra Technologies go up and down completely randomly.

Pair Corralation between Thayer Ventures and Zebra Technologies

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 13.15 times more return on investment than Zebra Technologies. However, Thayer Ventures is 13.15 times more volatile than Zebra Technologies. It trades about 0.16 of its potential returns per unit of risk. Zebra Technologies is currently generating about -0.1 per unit of risk. If you would invest  1.10  in Thayer Ventures Acquisition on October 6, 2024 and sell it today you would earn a total of  0.30  from holding Thayer Ventures Acquisition or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Thayer Ventures Acquisition  vs.  Zebra Technologies

Thayer Ventures Acqu

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Zebra Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zebra Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Zebra Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Thayer Ventures and Zebra Technologies

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

The idea behind Thayer Ventures Acquisition and Zebra Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.