Correlation Between Zeta Global and Stagwell

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Can any of the company-specific risk be diversified away by investing in both Zeta Global and Stagwell 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 Zeta Global and Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeta Global Holdings and Stagwell, you can compare the effects of market volatilities on Zeta Global and Stagwell 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 Zeta Global with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeta Global and Stagwell.

Diversification Opportunities for Zeta Global and Stagwell

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Zeta and Stagwell is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zeta Global Holdings and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and Zeta Global 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 Zeta Global Holdings are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Zeta Global i.e., Zeta Global and Stagwell go up and down completely randomly.

Pair Corralation between Zeta Global and Stagwell

Given the investment horizon of 90 days Zeta Global Holdings is expected to generate 1.05 times more return on investment than Stagwell. However, Zeta Global is 1.05 times more volatile than Stagwell. It trades about 0.09 of its potential returns per unit of risk. Stagwell is currently generating about 0.0 per unit of risk. If you would invest  1,311  in Zeta Global Holdings on May 6, 2025 and sell it today you would earn a total of  269.00  from holding Zeta Global Holdings or generate 20.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Zeta Global Holdings  vs.  Stagwell

 Performance 
       Timeline  
Zeta Global Holdings 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Zeta Global Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Zeta Global sustained solid returns over the last few months and may actually be approaching a breakup point.
Stagwell 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Stagwell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Stagwell is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Zeta Global and Stagwell Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Zeta Global and Stagwell

The main advantage of trading using opposite Zeta Global and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeta Global position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.
The idea behind Zeta Global Holdings and Stagwell 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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