Correlation Between Splitit Payments and Zenvia

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

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

Diversification Opportunities for Splitit Payments and Zenvia

-0.28

Correlation Coefficient

Splitit Payments  Zenvia

Very good diversification

The 3 months correlation between Splitit and Zenvia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia Inc and Splitit Payments 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 Splitit Payments are associated (or correlated) with Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of Splitit Payments i.e., Splitit Payments and Zenvia go up and down completely randomly.

Pair Corralation between Splitit Payments and Zenvia

If you would invest  227.00  in Zenvia Inc on February 26, 2024 and sell it today you would earn a total of  116.00  from holding Zenvia Inc or generate 51.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Splitit Payments  vs.  Zenvia Inc

Splitit Payments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Zenvia Inc

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with Splitit Payments and Zenvia

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

The idea behind Splitit Payments and Zenvia 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.