Correlation Between Abits and ZW Data
Can any of the company-specific risk be diversified away by investing in both Abits and ZW Data 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 Abits and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abits Group and ZW Data Action, you can compare the effects of market volatilities on Abits and ZW Data 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 Abits with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abits and ZW Data.
Diversification Opportunities for Abits and ZW Data
Good diversification
The 3 months correlation between Abits and CNET is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Abits Group and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Abits 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 Abits Group are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Abits i.e., Abits and ZW Data go up and down completely randomly.
Pair Corralation between Abits and ZW Data
Given the investment horizon of 90 days Abits Group is expected to generate 4.67 times more return on investment than ZW Data. However, Abits is 4.67 times more volatile than ZW Data Action. It trades about 0.1 of its potential returns per unit of risk. ZW Data Action is currently generating about 0.04 per unit of risk. If you would invest 290.00 in Abits Group on April 26, 2025 and sell it today you would earn a total of 172.00 from holding Abits Group or generate 59.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Abits Group vs. ZW Data Action
Performance |
Timeline |
Abits Group |
ZW Data Action |
Abits and ZW Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Abits and ZW Data
The main advantage of trading using opposite Abits and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abits position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.Abits vs. Bill Com Holdings | Abits vs. NetSol Technologies | Abits vs. Entravision Communications | Abits vs. Deluxe |
ZW Data vs. Baosheng Media Group | ZW Data vs. Lendway | ZW Data vs. Abits Group | ZW Data vs. Impact Fusion International |
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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