Correlation Between Under Armour and ZOOZ Power

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

By analyzing existing cross correlation between Under Armour C and ZOOZ Power Ltd, you can compare the effects of market volatilities on Under Armour and ZOOZ Power 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 Under Armour with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and ZOOZ Power.

Diversification Opportunities for Under Armour and ZOOZ Power

0.37

Correlation Coefficient

Under Armour  ZOOZ Power

Weak diversification

The 3 months correlation between Under and ZOOZ is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Under Armour 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 Under Armour C are associated (or correlated) with ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Under Armour i.e., Under Armour and ZOOZ Power go up and down completely randomly.

Pair Corralation between Under Armour and ZOOZ Power

Allowing for the 90-day total investment horizon Under Armour is expected to generate 39.43 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, Under Armour C is 1.07 times less risky than ZOOZ Power. It trades about 0.0 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  203.00  in ZOOZ Power Ltd on October 3, 2024 and sell it today you would earn a total of  42.00  from holding ZOOZ Power Ltd or generate 20.69% return on investment over 90 days.

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

Under Armour C  vs.  ZOOZ Power Ltd

Under Armour C

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Under Armour C has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Under Armour is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

ZOOZ Power

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ZOOZ Power Ltd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, ZOOZ Power is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Under Armour and ZOOZ Power

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

The idea behind Under Armour C and ZOOZ Power Ltd 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.