Correlation Between ZW Data and Infobird

Can any of the company-specific risk be diversified away by investing in both ZW Data and Infobird 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 Infobird 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 Infobird Co, you can compare the effects of market volatilities on ZW Data and Infobird 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 Infobird. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Infobird.

Diversification Opportunities for ZW Data and Infobird

0.12

Correlation Coefficient

ZW Data  Infobird

Average diversification

The 3 months correlation between CNET and Infobird is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird 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 Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of ZW Data i.e., ZW Data and Infobird go up and down completely randomly.

Pair Corralation between ZW Data and Infobird

Given the investment horizon of 90 days ZW Data Action is expected to generate 1.52 times more return on investment than Infobird. However, ZW Data is 1.52 times more volatile than Infobird Co. It trades about 0.03 of its potential returns per unit of risk. Infobird Co is currently generating about 0.03 per unit of risk. If you would invest  161.00  in ZW Data Action on April 27, 2025 and sell it today you would lose (5.00) from holding ZW Data Action or give up 3.11% of portfolio value over 90 days.

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

ZW Data Action  vs.  Infobird Co

ZW Data Action

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ZW Data Action are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, ZW Data unveiled solid returns over the last few months and may actually be approaching a breakup point.

Infobird

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Infobird Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental drivers, Infobird may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ZW Data and Infobird

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

The idea behind ZW Data Action and Infobird Co 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.