Correlation Between VirTra and ZoomInfo Technologies

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

By analyzing existing cross correlation between VirTra Inc and ZoomInfo Technologies, you can compare the effects of market volatilities on VirTra and ZoomInfo Technologies 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 VirTra with a short position of ZoomInfo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirTra and ZoomInfo Technologies.

Diversification Opportunities for VirTra and ZoomInfo Technologies

0.68

Correlation Coefficient

VirTra  ZoomInfo Technologies

Poor diversification

The 3 months correlation between VirTra and ZoomInfo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding VirTra Inc and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies and VirTra 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 VirTra Inc are associated (or correlated) with ZoomInfo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomInfo Technologies has no effect on the direction of VirTra i.e., VirTra and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between VirTra and ZoomInfo Technologies

Given the investment horizon of 90 days VirTra Inc is expected to generate 1.54 times more return on investment than ZoomInfo Technologies. However, VirTra is 1.54 times more volatile than ZoomInfo Technologies. It trades about 0.07 of its potential returns per unit of risk. ZoomInfo Technologies is currently generating about -0.03 per unit of risk. If you would invest  559.00  in VirTra Inc on March 7, 2025 and sell it today you would earn a total of  92.00  from holding VirTra Inc or generate 16.46% return on investment over 90 days.

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

VirTra Inc  vs.  ZoomInfo Technologies

VirTra Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in VirTra Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, VirTra demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ZoomInfo Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZoomInfo Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with VirTra and ZoomInfo Technologies

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

The idea behind VirTra Inc and ZoomInfo Technologies 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.