Correlation Between Zebra Technologies and Minim

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

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

Diversification Opportunities for Zebra Technologies and Minim

-0.51

Correlation Coefficient

Zebra Technologies  Minim

Excellent diversification

The 3 months correlation between Zebra and Minim is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and Zebra 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 Zebra Technologies are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of Zebra Technologies i.e., Zebra Technologies and Minim go up and down completely randomly.

Pair Corralation between Zebra Technologies and Minim

If you would invest  33,045  in Zebra Technologies on September 3, 2024 and sell it today you would earn a total of  7,655  from holding Zebra Technologies or generate 23.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Zebra Technologies  vs.  Minim Inc

Zebra Technologies

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zebra Technologies are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Zebra Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Minim Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Minim is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Zebra Technologies and Minim

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

The idea behind Zebra Technologies and Minim 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.