Correlation Between VALORA HLDG and ZKB PERPETUAL

Can any of the company-specific risk be diversified away by investing in both VALORA HLDG and ZKB PERPETUAL 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 VALORA HLDG and ZKB PERPETUAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VALORA HLDG OPEN and ZKB PERPETUAL VAR, you can compare the effects of market volatilities on VALORA HLDG and ZKB PERPETUAL 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 VALORA HLDG with a short position of ZKB PERPETUAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VALORA HLDG and ZKB PERPETUAL.

Diversification Opportunities for VALORA HLDG and ZKB PERPETUAL

0.0

Correlation Coefficient

VALORA HLDG  ZKB PERPETUAL

Pay attention - limited upside

The 3 months correlation between VALORA and ZKB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VALORA HLDG OPEN and ZKB PERPETUAL VAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB PERPETUAL VAR and VALORA HLDG 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 VALORA HLDG OPEN are associated (or correlated) with ZKB PERPETUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB PERPETUAL VAR has no effect on the direction of VALORA HLDG i.e., VALORA HLDG and ZKB PERPETUAL go up and down completely randomly.

Pair Corralation between VALORA HLDG and ZKB PERPETUAL

If you would invest (100.00) in ZKB PERPETUAL VAR on September 26, 2024 and sell it today you would earn a total of  100.00  from holding ZKB PERPETUAL VAR or generate -100.0% return on investment over 90 days.

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

VALORA HLDG OPEN  vs.  ZKB PERPETUAL VAR

VALORA HLDG OPEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VALORA HLDG OPEN has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, VALORA HLDG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

ZKB PERPETUAL VAR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZKB PERPETUAL VAR has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, ZKB PERPETUAL is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VALORA HLDG and ZKB PERPETUAL

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

The idea behind VALORA HLDG OPEN and ZKB PERPETUAL VAR 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.