Correlation Between Zoomd Technologies and BBTV Holdings

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

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

Diversification Opportunities for Zoomd Technologies and BBTV Holdings

-0.35

Correlation Coefficient

Zoomd Technologies  BBTV Holdings

Very good diversification

The 3 months correlation between Zoomd and BBTV is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zoomd Technologies and BBTV Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBTV Holdings and Zoomd 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 Zoomd Technologies are associated (or correlated) with BBTV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBTV Holdings has no effect on the direction of Zoomd Technologies i.e., Zoomd Technologies and BBTV Holdings go up and down completely randomly.

Pair Corralation between Zoomd Technologies and BBTV Holdings

If you would invest  28.00  in Zoomd Technologies on September 3, 2024 and sell it today you would earn a total of  24.00  from holding Zoomd Technologies or generate 85.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Zoomd Technologies  vs.  BBTV Holdings

Zoomd Technologies

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zoomd Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Zoomd Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

BBTV Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BBTV Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BBTV Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Zoomd Technologies and BBTV Holdings

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

The idea behind Zoomd Technologies and BBTV Holdings 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.