Correlation Between PROS Holdings and Zeta Global

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

By analyzing existing cross correlation between PROS Holdings and Zeta Global Holdings, you can compare the effects of market volatilities on PROS Holdings and Zeta Global 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 PROS Holdings with a short position of Zeta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROS Holdings and Zeta Global.

Diversification Opportunities for PROS Holdings and Zeta Global

0.54

Correlation Coefficient

PROS Holdings  Zeta Global

Very weak diversification

The 3 months correlation between PROS and Zeta is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PROS Holdings and Zeta Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeta Global Holdings and PROS Holdings 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 PROS Holdings are associated (or correlated) with Zeta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeta Global Holdings has no effect on the direction of PROS Holdings i.e., PROS Holdings and Zeta Global go up and down completely randomly.

Pair Corralation between PROS Holdings and Zeta Global

Considering the 90-day investment horizon PROS Holdings is expected to generate 0.54 times more return on investment than Zeta Global. However, PROS Holdings is 1.86 times less risky than Zeta Global. It trades about -0.03 of its potential returns per unit of risk. Zeta Global Holdings is currently generating about -0.15 per unit of risk. If you would invest  2,540  in PROS Holdings on December 4, 2024 and sell it today you would lose (161.00) from holding PROS Holdings or give up 6.34% of portfolio value over 90 days.

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

PROS Holdings  vs.  Zeta Global Holdings

PROS Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days PROS Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, PROS Holdings is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Zeta Global Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with PROS Holdings and Zeta Global

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

The idea behind PROS Holdings and Zeta Global Holdings 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.