Correlation Between Zoomd Technologies and Leafbuyer Technologies

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

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

Diversification Opportunities for Zoomd Technologies and Leafbuyer Technologies

-0.33

Correlation Coefficient

Zoomd Technologies  Leafbuyer Technologies

Very good diversification

The 3 months correlation between Zoomd and Leafbuyer is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zoomd Technologies and Leafbuyer Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafbuyer Technologies 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 Leafbuyer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafbuyer Technologies has no effect on the direction of Zoomd Technologies i.e., Zoomd Technologies and Leafbuyer Technologies go up and down completely randomly.

Pair Corralation between Zoomd Technologies and Leafbuyer Technologies

Assuming the 90 days horizon Zoomd Technologies is expected to under-perform the Leafbuyer Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Zoomd Technologies is 4.7 times less risky than Leafbuyer Technologies. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Leafbuyer Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1.10  in Leafbuyer Technologies on December 29, 2024 and sell it today you would earn a total of  0.70  from holding Leafbuyer Technologies or generate 63.64% return on investment over 90 days.

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

Zoomd Technologies  vs.  Leafbuyer Technologies

Zoomd Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoomd Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Leafbuyer Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Leafbuyer Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Leafbuyer Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zoomd Technologies and Leafbuyer Technologies

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

The idea behind Zoomd Technologies and Leafbuyer Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.