Correlation Between Pagaya Technologies and Zeta Global
Can any of the company-specific risk be diversified away by investing in both Pagaya Technologies 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 Pagaya Technologies and Zeta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pagaya Technologies and Zeta Global Holdings, you can compare the effects of market volatilities on Pagaya Technologies 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 Pagaya Technologies with a short position of Zeta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and Zeta Global.
Diversification Opportunities for Pagaya Technologies and Zeta Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pagaya and Zeta is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies i.e., Pagaya Technologies and Zeta Global go up and down completely randomly.
Pair Corralation between Pagaya Technologies and Zeta Global
Considering the 90-day investment horizon Pagaya Technologies is expected to generate 12.48 times less return on investment than Zeta Global. In addition to that, Pagaya Technologies is 1.02 times more volatile than Zeta Global Holdings. It trades about 0.0 of its total potential returns per unit of risk. Zeta Global Holdings is currently generating about 0.05 per unit of volatility. If you would invest 2,506 in Zeta Global Holdings on September 6, 2024 and sell it today you would earn a total of 125.00 from holding Zeta Global Holdings or generate 4.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Pagaya Technologies vs. Zeta Global Holdings
Performance |
Timeline |
Pagaya Technologies |
Zeta Global Holdings |
Pagaya Technologies and Zeta Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pagaya Technologies and Zeta Global
The main advantage of trading using opposite Pagaya Technologies and Zeta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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.Pagaya Technologies vs. Alarum Technologies | Pagaya Technologies vs. Arqit Quantum | Pagaya Technologies vs. Nutanix | Pagaya Technologies vs. Palo Alto Networks |
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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.
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