Correlation Between Zoom Video and Beamr Imaging

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

By analyzing existing cross correlation between Zoom Video Communications and Beamr Imaging Ltd, you can compare the effects of market volatilities on Zoom Video and Beamr Imaging 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 Zoom Video with a short position of Beamr Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Beamr Imaging.

Diversification Opportunities for Zoom Video and Beamr Imaging

0.57

Correlation Coefficient

Zoom Video  Beamr Imaging

Very weak diversification

The 3 months correlation between Zoom and Beamr is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Beamr Imaging Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamr Imaging and Zoom Video 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 Zoom Video Communications are associated (or correlated) with Beamr Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamr Imaging has no effect on the direction of Zoom Video i.e., Zoom Video and Beamr Imaging go up and down completely randomly.

Pair Corralation between Zoom Video and Beamr Imaging

Allowing for the 90-day total investment horizon Zoom Video Communications is expected to generate 0.26 times more return on investment than Beamr Imaging. However, Zoom Video Communications is 3.88 times less risky than Beamr Imaging. It trades about -0.07 of its potential returns per unit of risk. Beamr Imaging Ltd is currently generating about -0.05 per unit of risk. If you would invest  8,544  in Zoom Video Communications on December 26, 2024 and sell it today you would lose (766.00) from holding Zoom Video Communications or give up 8.97% of portfolio value over 90 days.

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

Zoom Video Communications  vs.  Beamr Imaging Ltd

Zoom Video Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoom Video Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Beamr Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beamr Imaging Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Zoom Video and Beamr Imaging

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

The idea behind Zoom Video Communications and Beamr Imaging Ltd 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.