Correlation Between ZoomInfo Technologies and VTEX

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

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

Diversification Opportunities for ZoomInfo Technologies and VTEX

-0.37

Correlation Coefficient

ZoomInfo Technologies  VTEX

Very good diversification

The 3 months correlation between ZoomInfo and VTEX is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ZoomInfo Technologies and VTEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTEX and ZoomInfo 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 ZoomInfo Technologies are associated (or correlated) with VTEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTEX has no effect on the direction of ZoomInfo Technologies i.e., ZoomInfo Technologies and VTEX go up and down completely randomly.

Pair Corralation between ZoomInfo Technologies and VTEX

Allowing for the 90-day total investment horizon ZoomInfo Technologies is expected to generate 1.74 times more return on investment than VTEX. However, ZoomInfo Technologies is 1.74 times more volatile than VTEX. It trades about 0.04 of its potential returns per unit of risk. VTEX is currently generating about -0.14 per unit of risk. If you would invest  1,029  in ZoomInfo Technologies on September 26, 2024 and sell it today you would earn a total of  53.00  from holding ZoomInfo Technologies or generate 5.15% return on investment over 90 days.

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

ZoomInfo Technologies  vs.  VTEX

ZoomInfo Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZoomInfo Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, ZoomInfo Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

VTEX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VTEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ZoomInfo Technologies and VTEX

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

The idea behind ZoomInfo Technologies and VTEX 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.