Correlation Between Zeta Global and Fondo De

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

By analyzing existing cross correlation between Zeta Global Holdings and Fondo de Inversion, you can compare the effects of market volatilities on Zeta Global and Fondo De 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 Zeta Global with a short position of Fondo De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeta Global and Fondo De.

Diversification Opportunities for Zeta Global and Fondo De

-0.84

Correlation Coefficient

Zeta Global  Fondo De

Pay attention - limited upside

The 3 months correlation between Zeta and Fondo is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zeta Global Holdings and Fondo de Inversion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fondo de Inversion and Zeta Global 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 Zeta Global Holdings are associated (or correlated) with Fondo De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fondo de Inversion has no effect on the direction of Zeta Global i.e., Zeta Global and Fondo De go up and down completely randomly.

Pair Corralation between Zeta Global and Fondo De

Given the investment horizon of 90 days Zeta Global Holdings is expected to generate 3.3 times more return on investment than Fondo De. However, Zeta Global is 3.3 times more volatile than Fondo de Inversion. It trades about 0.18 of its potential returns per unit of risk. Fondo de Inversion is currently generating about 0.0 per unit of risk. If you would invest  878.00  in Zeta Global Holdings on July 10, 2024 and sell it today you would earn a total of  2,160  from holding Zeta Global Holdings or generate 246.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.38%
Values	Daily Returns

Zeta Global Holdings  vs.  Fondo de Inversion

Zeta Global Holdings

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zeta Global Holdings are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zeta Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Fondo de Inversion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fondo de Inversion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fondo De is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Zeta Global and Fondo De

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

The idea behind Zeta Global Holdings and Fondo de Inversion 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.