Correlation Between Flywire Corp and Zeta Global

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

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

Diversification Opportunities for Flywire Corp and Zeta Global

-0.61

Correlation Coefficient

Flywire Corp  Zeta Global

Excellent diversification

The 3 months correlation between Flywire and Zeta is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Flywire Corp and Zeta Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeta Global Holdings and Flywire Corp 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 Flywire Corp are associated (or correlated) with Zeta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeta Global Holdings has no effect on the direction of Flywire Corp i.e., Flywire Corp and Zeta Global go up and down completely randomly.

Pair Corralation between Flywire Corp and Zeta Global

Given the investment horizon of 90 days Flywire Corp is expected to generate 0.42 times more return on investment than Zeta Global. However, Flywire Corp is 2.4 times less risky than Zeta Global. It trades about 0.15 of its potential returns per unit of risk. Zeta Global Holdings is currently generating about 0.02 per unit of risk. If you would invest  1,754  in Flywire Corp on September 5, 2024 and sell it today you would earn a total of  516.00  from holding Flywire Corp or generate 29.42% return on investment over 90 days.

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

Flywire Corp  vs.  Zeta Global Holdings

Flywire Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Flywire Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Flywire Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Zeta Global Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zeta Global Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zeta Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Flywire Corp and Zeta Global

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

The idea behind Flywire Corp and Zeta Global Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.