Correlation Between ZenaTech and InTest

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

Diversification Opportunities for ZenaTech and InTest

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between ZenaTech and InTest is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ZenaTech and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and ZenaTech 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 ZenaTech are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of ZenaTech i.e., ZenaTech and InTest go up and down completely randomly.

Pair Corralation between ZenaTech and InTest

Given the investment horizon of 90 days ZenaTech is expected to generate 2.77 times more return on investment than InTest. However, ZenaTech is 2.77 times more volatile than inTest. It trades about 0.01 of its potential returns per unit of risk. inTest is currently generating about -0.04 per unit of risk. If you would invest  330.00  in ZenaTech on October 4, 2025 and sell it today you would lose (10.00) from holding ZenaTech or give up 3.03% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ZenaTech  vs.  inTest

 Performance 
       Timeline  
ZenaTech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZenaTech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock'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 company investors.
inTest 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days inTest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, InTest is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ZenaTech and InTest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZenaTech and InTest

The main advantage of trading using opposite ZenaTech and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZenaTech position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.
The idea behind ZenaTech and inTest 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.
Check out your portfolio center.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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