Correlation Between Ibotta and ZW Data

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Can any of the company-specific risk be diversified away by investing in both Ibotta and ZW Data 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 Ibotta and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibotta and ZW Data Action, you can compare the effects of market volatilities on Ibotta and ZW Data 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 Ibotta with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibotta and ZW Data.

Diversification Opportunities for Ibotta and ZW Data

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ibotta and CNET is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ibotta and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Ibotta 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 Ibotta are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Ibotta i.e., Ibotta and ZW Data go up and down completely randomly.

Pair Corralation between Ibotta and ZW Data

Given the investment horizon of 90 days Ibotta is expected to under-perform the ZW Data. But the etf apears to be less risky and, when comparing its historical volatility, Ibotta is 1.28 times less risky than ZW Data. The etf trades about -0.15 of its potential returns per unit of risk. The ZW Data Action is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  183.00  in ZW Data Action on October 30, 2025 and sell it today you would lose (60.00) from holding ZW Data Action or give up 32.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ibotta  vs.  ZW Data Action

 Performance 
       Timeline  
Ibotta 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Ibotta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.
ZW Data Action 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ibotta and ZW Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ibotta and ZW Data

The main advantage of trading using opposite Ibotta and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibotta position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.
The idea behind Ibotta and ZW Data Action 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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