Correlation Between ZoomInfo Technologies and NCino

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

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

Diversification Opportunities for ZoomInfo Technologies and NCino

-0.3

Correlation Coefficient

ZoomInfo Technologies  NCino

Very good diversification

The 3 months correlation between ZoomInfo and NCino is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ZoomInfo Technologies and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc and ZoomInfo 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 ZoomInfo Technologies are associated (or correlated) with NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of ZoomInfo Technologies i.e., ZoomInfo Technologies and NCino go up and down completely randomly.

Pair Corralation between ZoomInfo Technologies and NCino

Allowing for the 90-day total investment horizon ZoomInfo Technologies is expected to generate 1.96 times more return on investment than NCino. However, ZoomInfo Technologies is 1.96 times more volatile than nCino Inc. It trades about 0.02 of its potential returns per unit of risk. nCino Inc is currently generating about -0.17 per unit of risk. If you would invest  1,106  in ZoomInfo Technologies on December 25, 2024 and sell it today you would earn a total of  1.00  from holding ZoomInfo Technologies or generate 0.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ZoomInfo Technologies  vs.  nCino Inc

ZoomInfo Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ZoomInfo Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, ZoomInfo Technologies is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

nCino Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days nCino Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with ZoomInfo Technologies and NCino

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

The idea behind ZoomInfo Technologies and nCino 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.