Correlation Between Zillow Group and Claymore MACROshares

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

By analyzing existing cross correlation between Zillow Group Class and Claymore MACROshares Oil, you can compare the effects of market volatilities on Zillow Group and Claymore MACROshares 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 Zillow Group with a short position of Claymore MACROshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zillow Group and Claymore MACROshares.

Diversification Opportunities for Zillow Group and Claymore MACROshares

0.0

Correlation Coefficient

Zillow Group  Claymore MACROshares

Pay attention - limited upside

The 3 months correlation between Zillow and Claymore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group Class and Claymore MACROshares Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claymore MACROshares Oil and Zillow Group 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 Zillow Group Class are associated (or correlated) with Claymore MACROshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claymore MACROshares Oil has no effect on the direction of Zillow Group i.e., Zillow Group and Claymore MACROshares go up and down completely randomly.

Pair Corralation between Zillow Group and Claymore MACROshares

If you would invest  3,848  in Zillow Group Class on September 17, 2024 and sell it today you would earn a total of  4,269  from holding Zillow Group Class or generate 110.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zillow Group Class  vs.  Claymore MACROshares Oil

Zillow Group Class

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Zillow Group Class are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Zillow Group showed solid returns over the last few months and may actually be approaching a breakup point.

Claymore MACROshares Oil

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Claymore MACROshares Oil has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Claymore MACROshares is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Zillow Group and Claymore MACROshares

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

The idea behind Zillow Group Class and Claymore MACROshares Oil 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.