Correlation Between WAVS Old and Zoomcar Holdings

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

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

Diversification Opportunities for WAVS Old and Zoomcar Holdings

0.0

Correlation Coefficient

WAVS Old  Zoomcar Holdings

Pay attention - limited upside

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

Pair Corralation between WAVS Old and Zoomcar Holdings

If you would invest  1.70  in Zoomcar Holdings on December 29, 2024 and sell it today you would lose (0.55) from holding Zoomcar Holdings or give up 32.35% of portfolio value over 90 days.

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

WAVS Old  vs.  Zoomcar Holdings

WAVS Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days WAVS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, WAVS Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Zoomcar Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zoomcar Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Zoomcar Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WAVS Old and Zoomcar Holdings

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

The idea behind WAVS Old and Zoomcar 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.