Correlation Between Ziff Davis and Kidoz

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

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

Diversification Opportunities for Ziff Davis and Kidoz

0.46

Correlation Coefficient

Ziff Davis  Kidoz

Very weak diversification

The 3 months correlation between Ziff and Kidoz is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ziff Davis and Kidoz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidoz Inc and Ziff Davis 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 Ziff Davis are associated (or correlated) with Kidoz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidoz Inc has no effect on the direction of Ziff Davis i.e., Ziff Davis and Kidoz go up and down completely randomly.

Pair Corralation between Ziff Davis and Kidoz

Allowing for the 90-day total investment horizon Ziff Davis is expected to under-perform the Kidoz. But the stock apears to be less risky and, when comparing its historical volatility, Ziff Davis is 25.92 times less risky than Kidoz. The stock trades about -0.04 of its potential returns per unit of risk. The Kidoz Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Kidoz Inc on October 24, 2024 and sell it today you would lose (13.00) from holding Kidoz Inc or give up 59.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Ziff Davis  vs.  Kidoz Inc

Ziff Davis

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ziff Davis are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Ziff Davis exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kidoz Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kidoz Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kidoz reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ziff Davis and Kidoz

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

The idea behind Ziff Davis and Kidoz Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.