Correlation Between ZeroFox Holdings and Cemtrex

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

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

Diversification Opportunities for ZeroFox Holdings and Cemtrex

-0.45

Correlation Coefficient

ZeroFox Holdings  Cemtrex

Very good diversification

The 3 months correlation between ZeroFox and Cemtrex is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ZeroFox Holdings and Cemtrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtrex and ZeroFox Holdings 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 ZeroFox Holdings are associated (or correlated) with Cemtrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtrex has no effect on the direction of ZeroFox Holdings i.e., ZeroFox Holdings and Cemtrex go up and down completely randomly.

Pair Corralation between ZeroFox Holdings and Cemtrex

If you would invest  118.00  in ZeroFox Holdings on August 30, 2024 and sell it today you would earn a total of  0.00  from holding ZeroFox Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

ZeroFox Holdings  vs.  Cemtrex

ZeroFox Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZeroFox Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ZeroFox Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Cemtrex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cemtrex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ZeroFox Holdings and Cemtrex

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

The idea behind ZeroFox Holdings and Cemtrex 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.