Correlation Between JSC National and Zoom Video

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

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

Diversification Opportunities for JSC National and Zoom Video

-0.46

Correlation Coefficient

JSC National  Zoom Video

Very good diversification

The 3 months correlation between JSC and Zoom is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding JSC National Atomic 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 JSC National 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 JSC National Atomic 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 JSC National i.e., JSC National and Zoom Video go up and down completely randomly.

Pair Corralation between JSC National and Zoom Video

Assuming the 90 days trading horizon JSC National Atomic is expected to under-perform the Zoom Video. In addition to that, JSC National is 1.05 times more volatile than Zoom Video Communications. It trades about -0.03 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about -0.01 per unit of volatility. If you would invest  8,391  in Zoom Video Communications on December 27, 2024 and sell it today you would lose (106.00) from holding Zoom Video Communications or give up 1.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.67%
Values	Daily Returns

JSC National Atomic  vs.  Zoom Video Communications

JSC National Atomic

Risk-Adjusted Performance

Very Weak

Over the last 90 days JSC National Atomic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, JSC National is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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 comparatively stable basic indicators, Zoom Video is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JSC National and Zoom Video

The main advantage of trading using opposite JSC National and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC National 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 JSC National Atomic 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.