Correlation Between Fobi AI and Zenvia

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

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

Diversification Opportunities for Fobi AI and Zenvia

-0.07

Correlation Coefficient

Fobi AI  Zenvia

Good diversification

The 3 months correlation between Fobi and Zenvia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fobi AI and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia Inc and Fobi AI 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 Fobi AI are associated (or correlated) with Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of Fobi AI i.e., Fobi AI and Zenvia go up and down completely randomly.

Pair Corralation between Fobi AI and Zenvia

Assuming the 90 days horizon Fobi AI is expected to generate 5.98 times more return on investment than Zenvia. However, Fobi AI is 5.98 times more volatile than Zenvia Inc. It trades about 0.16 of its potential returns per unit of risk. Zenvia Inc is currently generating about 0.18 per unit of risk. If you would invest  0.80  in Fobi AI on September 23, 2024 and sell it today you would earn a total of  0.20  from holding Fobi AI or generate 25.0% return on investment over 90 days.

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

Fobi AI  vs.  Zenvia Inc

Fobi AI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fobi AI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Zenvia Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zenvia Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Zenvia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fobi AI and Zenvia

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

The idea behind Fobi AI and Zenvia Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.