Correlation Between Technos SA and ZoomInfo Technologies

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

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

Diversification Opportunities for Technos SA and ZoomInfo Technologies

0.31

Correlation Coefficient

Technos SA  ZoomInfo Technologies

Weak diversification

The 3 months correlation between Technos and ZoomInfo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Technos SA and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies and Technos SA 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 Technos SA are associated (or correlated) with ZoomInfo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomInfo Technologies has no effect on the direction of Technos SA i.e., Technos SA and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between Technos SA and ZoomInfo Technologies

Assuming the 90 days trading horizon Technos SA is expected to generate 1.55 times more return on investment than ZoomInfo Technologies. However, Technos SA is 1.55 times more volatile than ZoomInfo Technologies. It trades about 0.06 of its potential returns per unit of risk. ZoomInfo Technologies is currently generating about 0.01 per unit of risk. If you would invest  505.00  in Technos SA on October 8, 2024 and sell it today you would earn a total of  32.00  from holding Technos SA or generate 6.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.3%
Values	Daily Returns

Technos SA  vs.  ZoomInfo Technologies

Technos SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Technos SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Technos SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ZoomInfo Technologies

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZoomInfo Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, ZoomInfo Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Technos SA and ZoomInfo Technologies

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

The idea behind Technos SA and ZoomInfo 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.