Correlation Between Zenvia and Internet Infinity

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

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

Diversification Opportunities for Zenvia and Internet Infinity

0.16

Correlation Coefficient

Zenvia  Internet Infinity

Average diversification

The 3 months correlation between Zenvia and Internet is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zenvia Inc and Internet Infinity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Infinity and Zenvia 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 Zenvia Inc are associated (or correlated) with Internet Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Infinity has no effect on the direction of Zenvia i.e., Zenvia and Internet Infinity go up and down completely randomly.

Pair Corralation between Zenvia and Internet Infinity

Given the investment horizon of 90 days Zenvia Inc is expected to generate 1.0 times more return on investment than Internet Infinity. However, Zenvia Inc is 1.0 times less risky than Internet Infinity. It trades about 0.05 of its potential returns per unit of risk. Internet Infinity is currently generating about -0.09 per unit of risk. If you would invest  148.00  in Zenvia Inc on September 23, 2024 and sell it today you would earn a total of  14.00  from holding Zenvia Inc or generate 9.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Zenvia Inc  vs.  Internet Infinity

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.

Internet Infinity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Internet Infinity 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 basic 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.

Pair Trading with Zenvia and Internet Infinity

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

The idea behind Zenvia Inc and Internet Infinity 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 Commodity Directory module to find actively traded commodities issued by global exchanges.