Correlation Between Vodafone Group and ZoomerMedia

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

By analyzing existing cross correlation between Vodafone Group PLC and ZoomerMedia Limited, you can compare the effects of market volatilities on Vodafone Group and ZoomerMedia 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 Vodafone Group with a short position of ZoomerMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and ZoomerMedia.

Diversification Opportunities for Vodafone Group and ZoomerMedia

0.0

Correlation Coefficient

Vodafone Group  ZoomerMedia

Pay attention - limited upside

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

Pair Corralation between Vodafone Group and ZoomerMedia

If you would invest  842.00  in Vodafone Group PLC on December 30, 2024 and sell it today you would earn a total of  103.00  from holding Vodafone Group PLC or generate 12.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vodafone Group PLC  vs.  ZoomerMedia Limited

Vodafone Group PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vodafone Group PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Vodafone Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ZoomerMedia Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZoomerMedia Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ZoomerMedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Vodafone Group and ZoomerMedia

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

The idea behind Vodafone Group PLC and ZoomerMedia Limited 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.