Correlation Between Zoomd Technologies and Newlox Gold

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

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

Diversification Opportunities for Zoomd Technologies and Newlox Gold

-0.39

Correlation Coefficient

Zoomd Technologies  Newlox Gold

Very good diversification

The 3 months correlation between Zoomd and Newlox is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zoomd Technologies and Newlox Gold Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newlox Gold Ventures and Zoomd Technologies 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 Zoomd Technologies are associated (or correlated) with Newlox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newlox Gold Ventures has no effect on the direction of Zoomd Technologies i.e., Zoomd Technologies and Newlox Gold go up and down completely randomly.

Pair Corralation between Zoomd Technologies and Newlox Gold

Assuming the 90 days horizon Zoomd Technologies is expected to generate 0.66 times more return on investment than Newlox Gold. However, Zoomd Technologies is 1.52 times less risky than Newlox Gold. It trades about 0.19 of its potential returns per unit of risk. Newlox Gold Ventures is currently generating about 0.01 per unit of risk. If you would invest  54.00  in Zoomd Technologies on May 6, 2025 and sell it today you would earn a total of  40.00  from holding Zoomd Technologies or generate 74.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Zoomd Technologies  vs.  Newlox Gold Ventures

Zoomd Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zoomd Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Zoomd Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Newlox Gold Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Newlox Gold Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Newlox Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Zoomd Technologies and Newlox Gold

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

The idea behind Zoomd Technologies and Newlox Gold Ventures 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.