Correlation Between Zoom Video and My Size

Can any of the company-specific risk be diversified away by investing in both Zoom Video and My Size 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 My Size 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 My Size, you can compare the effects of market volatilities on Zoom Video and My Size 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 My Size. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and My Size.

Diversification Opportunities for Zoom Video and My Size

0.36

Correlation Coefficient

Zoom Video  My Size

Weak diversification

The 3 months correlation between Zoom and MYSZ is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size 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 My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Zoom Video i.e., Zoom Video and My Size go up and down completely randomly.

Pair Corralation between Zoom Video and My Size

Allowing for the 90-day total investment horizon Zoom Video Communications is expected to generate 0.19 times more return on investment than My Size. However, Zoom Video Communications is 5.27 times less risky than My Size. It trades about -0.07 of its potential returns per unit of risk. My Size is currently generating about -0.14 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Zoom Video Communications  vs.  My Size

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.

My Size

Risk-Adjusted Performance

Very Weak

Over the last 90 days My Size has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Zoom Video and My Size

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

The idea behind Zoom Video Communications and My Size 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.