Correlation Between Zillow Group and Amylyx Pharmaceuticals

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Can any of the company-specific risk be diversified away by investing in both Zillow Group and Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals, you can compare the effects of market volatilities on Zillow Group and Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zillow Group and Amylyx Pharmaceuticals.

Diversification Opportunities for Zillow Group and Amylyx Pharmaceuticals

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Zillow and Amylyx is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group Class and Amylyx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amylyx Pharmaceuticals has no effect on the direction of Zillow Group i.e., Zillow Group and Amylyx Pharmaceuticals go up and down completely randomly.

Pair Corralation between Zillow Group and Amylyx Pharmaceuticals

Taking into account the 90-day investment horizon Zillow Group Class is expected to under-perform the Amylyx Pharmaceuticals. But the etf apears to be less risky and, when comparing its historical volatility, Zillow Group Class is 1.61 times less risky than Amylyx Pharmaceuticals. The etf trades about -0.08 of its potential returns per unit of risk. The Amylyx Pharmaceuticals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  995.00  in Amylyx Pharmaceuticals on September 4, 2025 and sell it today you would earn a total of  380.00  from holding Amylyx Pharmaceuticals or generate 38.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Zillow Group Class  vs.  Amylyx Pharmaceuticals

 Performance 
       Timeline  
Zillow Group Class 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Zillow Group Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.
Amylyx Pharmaceuticals 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Amylyx Pharmaceuticals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Amylyx Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Zillow Group and Amylyx Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Zillow Group and Amylyx Pharmaceuticals

The main advantage of trading using opposite Zillow Group and Amylyx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zillow Group position performs unexpectedly, Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals will offset losses from the drop in Amylyx Pharmaceuticals' long position.
The idea behind Zillow Group Class and Amylyx Pharmaceuticals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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