Correlation Between Zebra Technologies and ZoomInfo Technologies

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

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

Diversification Opportunities for Zebra Technologies and ZoomInfo Technologies

0.09

Correlation Coefficient

Zebra Technologies  ZoomInfo Technologies

Significant diversification

The 3 months correlation between Zebra and ZoomInfo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies and Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies i.e., Zebra Technologies and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between Zebra Technologies and ZoomInfo Technologies

Assuming the 90 days trading horizon Zebra Technologies is expected to under-perform the ZoomInfo Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Zebra Technologies is 1.19 times less risky than ZoomInfo Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The ZoomInfo Technologies is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  844.00  in ZoomInfo Technologies on December 25, 2024 and sell it today you would lose (66.00) from holding ZoomInfo Technologies or give up 7.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	89.83%
Values	Daily Returns

Zebra Technologies  vs.  ZoomInfo Technologies

Zebra Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zebra Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ZoomInfo Technologies

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Zebra Technologies and ZoomInfo Technologies

The main advantage of trading using opposite Zebra Technologies and ZoomInfo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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 Zebra Technologies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.