Correlation Between Zoomd Technologies and Meta CDR

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

By analyzing existing cross correlation between Zoomd Technologies and Meta CDR, you can compare the effects of market volatilities on Zoomd Technologies and Meta CDR 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 Meta CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomd Technologies and Meta CDR.

Diversification Opportunities for Zoomd Technologies and Meta CDR

0.58

Correlation Coefficient

Zoomd Technologies  Meta CDR

Very weak diversification

The 3 months correlation between Zoomd and Meta is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zoomd Technologies and Meta CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta CDR 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 Meta CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta CDR has no effect on the direction of Zoomd Technologies i.e., Zoomd Technologies and Meta CDR go up and down completely randomly.

Pair Corralation between Zoomd Technologies and Meta CDR

Assuming the 90 days trading horizon Zoomd Technologies is expected to generate 2.45 times more return on investment than Meta CDR. However, Zoomd Technologies is 2.45 times more volatile than Meta CDR. It trades about 0.19 of its potential returns per unit of risk. Meta CDR is currently generating about 0.17 per unit of risk. If you would invest  73.00  in Zoomd Technologies on May 4, 2025 and sell it today you would earn a total of  56.00  from holding Zoomd Technologies or generate 76.71% return on investment over 90 days.

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

Zoomd Technologies  vs.  Meta CDR

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. In spite of fairly abnormal primary indicators, Zoomd Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Meta CDR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Meta CDR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Meta CDR displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zoomd Technologies and Meta CDR

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

The idea behind Zoomd Technologies and Meta CDR 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.