Correlation Between ZW Data and Mink Therapeutics

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

Diversification Opportunities for ZW Data and Mink Therapeutics

0.47

Correlation Coefficient

ZW Data  Mink Therapeutics

Very weak diversification

The 3 months correlation between CNET and Mink is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics 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 Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of ZW Data i.e., ZW Data and Mink Therapeutics go up and down completely randomly.

Pair Corralation between ZW Data and Mink Therapeutics

Given the investment horizon of 90 days ZW Data Action is expected to under-perform the Mink Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, ZW Data Action is 12.14 times less risky than Mink Therapeutics. The stock trades about 0.0 of its potential returns per unit of risk. The Mink Therapeutics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  760.00  in Mink Therapeutics on May 19, 2025 and sell it today you would earn a total of  731.00  from holding Mink Therapeutics or generate 96.18% 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.  Mink Therapeutics

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.

Mink Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mink Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward-looking signals, Mink Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZW Data and Mink Therapeutics

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

The idea behind ZW Data Action and Mink Therapeutics 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.