Correlation Between Zscaler and Informatica

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

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

Diversification Opportunities for Zscaler and Informatica

0.58

Correlation Coefficient

Zscaler  Informatica

Very weak diversification

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

Pair Corralation between Zscaler and Informatica

Allowing for the 90-day total investment horizon Zscaler is expected to generate 2.55 times less return on investment than Informatica. But when comparing it to its historical volatility, Zscaler is 1.09 times less risky than Informatica. It trades about 0.08 of its potential returns per unit of risk. Informatica is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,920  in Informatica on May 22, 2025 and sell it today you would earn a total of  554.00  from holding Informatica or generate 28.85% return on investment over 90 days.

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

Zscaler  vs.  Informatica

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.

Informatica

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Informatica are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Informatica sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zscaler and Informatica

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

The idea behind Zscaler and Informatica 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.