Correlation Between Zscaler and Alpha Technology

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

By analyzing existing cross correlation between Zscaler and Alpha Technology Group, you can compare the effects of market volatilities on Zscaler and Alpha Technology 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 Alpha Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zscaler and Alpha Technology.

Diversification Opportunities for Zscaler and Alpha Technology

-0.34

Correlation Coefficient

Zscaler  Alpha Technology

Very good diversification

The 3 months correlation between Zscaler and Alpha is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zscaler and Alpha Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Technology 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 Alpha Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Technology has no effect on the direction of Zscaler i.e., Zscaler and Alpha Technology go up and down completely randomly.

Pair Corralation between Zscaler and Alpha Technology

Allowing for the 90-day total investment horizon Zscaler is expected to generate 5.98 times less return on investment than Alpha Technology. But when comparing it to its historical volatility, Zscaler is 4.8 times less risky than Alpha Technology. It trades about 0.06 of its potential returns per unit of risk. Alpha Technology Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  440.00  in Alpha Technology Group on May 14, 2025 and sell it today you would earn a total of  1,396  from holding Alpha Technology Group or generate 317.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.08%
Values	Daily Returns

Zscaler  vs.  Alpha Technology Group

Zscaler

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Zscaler are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Zscaler may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Alpha Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Alpha Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Zscaler and Alpha Technology

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

The idea behind Zscaler and Alpha Technology Group 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.