Correlation Between 58 and Zillow
Can any of the company-specific risk be diversified away by investing in both 58 and Zillow 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 58 and Zillow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 58 Inc and Zillow Group, you can compare the effects of market volatilities on 58 and Zillow 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 58 with a short position of Zillow. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58 and Zillow.
Diversification Opportunities for 58 and Zillow
Pay attention - limited upside
The 3 months correlation between 58 and Zillow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 58 Inc and Zillow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zillow Group and 58 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 58 Inc are associated (or correlated) with Zillow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zillow Group has no effect on the direction of 58 i.e., 58 and Zillow go up and down completely randomly.
Pair Corralation between 58 and Zillow
If you would invest 3,781 in Zillow Group on January 18, 2024 and sell it today you would earn a total of 489.00 from holding Zillow Group or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
58 Inc vs. Zillow Group
Performance |
| Timeline |
| 58 Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zillow Group |
58 and Zillow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 58 and Zillow
The main advantage of trading using opposite 58 and Zillow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58 position performs unexpectedly, Zillow 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 Zillow will offset losses from the drop in Zillow's long position.The idea behind 58 Inc and Zillow Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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