Correlation Between Zscaler and A10 Network

Can any of the company-specific risk be diversified away by investing in both Zscaler and A10 Network 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 Zscaler and A10 Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zscaler and A10 Network, you can compare the effects of market volatilities on Zscaler and A10 Network 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 Zscaler with a short position of A10 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zscaler and A10 Network.

Diversification Opportunities for Zscaler and A10 Network

0.82

Correlation Coefficient

Zscaler  A10 Network

Very poor diversification

The 3 months correlation between Zscaler and A10 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zscaler and A10 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Network and Zscaler 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 Zscaler are associated (or correlated) with A10 Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Network has no effect on the direction of Zscaler i.e., Zscaler and A10 Network go up and down completely randomly.

Pair Corralation between Zscaler and A10 Network

Allowing for the 90-day total investment horizon Zscaler is expected to generate 0.9 times more return on investment than A10 Network. However, Zscaler is 1.11 times less risky than A10 Network. It trades about 0.0 of its potential returns per unit of risk. A10 Network is currently generating about -0.02 per unit of risk. If you would invest  29,618  in Zscaler on July 10, 2025 and sell it today you would lose (343.00) from holding Zscaler or give up 1.16% of portfolio value over 90 days.

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

Zscaler  vs.  A10 Network

Zscaler

Risk-Adjusted Performance

Weakest

Over the last 90 days Zscaler has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Zscaler is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

A10 Network

Risk-Adjusted Performance

Weakest

Over the last 90 days A10 Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, A10 Network is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Zscaler and A10 Network

The main advantage of trading using opposite Zscaler and A10 Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zscaler position performs unexpectedly, A10 Network 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 A10 Network will offset losses from the drop in A10 Network's long position.

The idea behind Zscaler and A10 Network 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.