Correlation Between ZOOZ Power and Now

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

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

Diversification Opportunities for ZOOZ Power and Now

0.27

Correlation Coefficient

ZOOZ Power  Now

Modest diversification

The 3 months correlation between ZOOZ and Now is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and Now Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Now Inc and ZOOZ Power 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 ZOOZ Power Ltd are associated (or correlated) with Now. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Now Inc has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and Now go up and down completely randomly.

Pair Corralation between ZOOZ Power and Now

Assuming the 90 days horizon ZOOZ Power Ltd is expected to generate 12.28 times more return on investment than Now. However, ZOOZ Power is 12.28 times more volatile than Now Inc. It trades about 0.25 of its potential returns per unit of risk. Now Inc is currently generating about -0.49 per unit of risk. If you would invest  5.00  in ZOOZ Power Ltd on September 27, 2024 and sell it today you would earn a total of  3.86  from holding ZOOZ Power Ltd or generate 77.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

ZOOZ Power Ltd  vs.  Now Inc

ZOOZ Power

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZOOZ Power Ltd are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, ZOOZ Power showed solid returns over the last few months and may actually be approaching a breakup point.

Now Inc

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Now Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Now is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with ZOOZ Power and Now

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

The idea behind ZOOZ Power Ltd and Now 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..