Correlation Between Zenvia and BYND Cannasoft

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

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

Diversification Opportunities for Zenvia and BYND Cannasoft

-0.07

Correlation Coefficient

Zenvia  BYND Cannasoft

Good diversification

The 3 months correlation between Zenvia and BYND is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Zenvia Inc and BYND Cannasoft Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYND Cannasoft Enter and Zenvia 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 Zenvia Inc are associated (or correlated) with BYND Cannasoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYND Cannasoft Enter has no effect on the direction of Zenvia i.e., Zenvia and BYND Cannasoft go up and down completely randomly.

Pair Corralation between Zenvia and BYND Cannasoft

Given the investment horizon of 90 days Zenvia Inc is expected to under-perform the BYND Cannasoft. In addition to that, Zenvia is 2.03 times more volatile than BYND Cannasoft Enterprises. It trades about -0.04 of its total potential returns per unit of risk. BYND Cannasoft Enterprises is currently generating about -0.08 per unit of volatility. If you would invest  1,091  in BYND Cannasoft Enterprises on September 24, 2024 and sell it today you would lose (301.00) from holding BYND Cannasoft Enterprises or give up 27.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Zenvia Inc  vs.  BYND Cannasoft Enterprises

Zenvia Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zenvia Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Zenvia showed solid returns over the last few months and may actually be approaching a breakup point.

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BYND Cannasoft Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BYND Cannasoft is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Zenvia and BYND Cannasoft

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

The idea behind Zenvia Inc and BYND Cannasoft Enterprises 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.