Correlation Between ZW Data and Abits

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

By analyzing existing cross correlation between ZW Data Action and Abits Group, you can compare the effects of market volatilities on ZW Data and Abits 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 ZW Data with a short position of Abits. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Abits.

Diversification Opportunities for ZW Data and Abits

0.41

Correlation Coefficient

ZW Data  Abits

Very weak diversification

The 3 months correlation between CNET and Abits is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Abits Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abits Group and ZW Data 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 ZW Data Action are associated (or correlated) with Abits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abits Group has no effect on the direction of ZW Data i.e., ZW Data and Abits go up and down completely randomly.

Pair Corralation between ZW Data and Abits

Given the investment horizon of 90 days ZW Data is expected to generate 13.7 times less return on investment than Abits. In addition to that, ZW Data is 1.01 times more volatile than Abits Group. It trades about 0.0 of its total potential returns per unit of risk. Abits Group is currently generating about 0.05 per unit of volatility. If you would invest  379.00  in Abits Group on May 16, 2025 and sell it today you would earn a total of  24.00  from holding Abits Group or generate 6.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ZW Data Action  vs.  Abits Group

ZW Data Action

Risk-Adjusted Performance

Weakest

Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ZW Data is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Abits Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Abits Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Abits unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZW Data and Abits

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

The idea behind ZW Data Action and Abits 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..