Correlation Between Zillow Group and Comscore

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

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

Diversification Opportunities for Zillow Group and Comscore

0.8

Correlation Coefficient

Zillow Group  Comscore

Very poor diversification

The 3 months correlation between Zillow and Comscore is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group Class and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore and Zillow Group 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 Zillow Group Class are associated (or correlated) with Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Zillow Group i.e., Zillow Group and Comscore go up and down completely randomly.

Pair Corralation between Zillow Group and Comscore

Taking into account the 90-day investment horizon Zillow Group Class is expected to generate 0.47 times more return on investment than Comscore. However, Zillow Group Class is 2.13 times less risky than Comscore. It trades about 0.16 of its potential returns per unit of risk. Comscore is currently generating about 0.05 per unit of risk. If you would invest  6,813  in Zillow Group Class on May 4, 2025 and sell it today you would earn a total of  1,207  from holding Zillow Group Class or generate 17.72% return on investment over 90 days.

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

Zillow Group Class  vs.  Comscore

Zillow Group Class

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zillow Group Class are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Zillow Group showed solid returns over the last few months and may actually be approaching a breakup point.

Comscore

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Comscore are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Comscore may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Zillow Group and Comscore

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

The idea behind Zillow Group Class and Comscore 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.