Correlation Between Zeta Global and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Zeta Global and Defensive Market 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 Zeta Global and Defensive Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeta Global Holdings and Defensive Market Strategies, you can compare the effects of market volatilities on Zeta Global and Defensive Market 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 Zeta Global with a short position of Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeta Global and Defensive Market.
Diversification Opportunities for Zeta Global and Defensive Market
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zeta and Defensive is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Zeta Global Holdings and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str and Zeta Global 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 Zeta Global Holdings are associated (or correlated) with Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Zeta Global i.e., Zeta Global and Defensive Market go up and down completely randomly.
Pair Corralation between Zeta Global and Defensive Market
Given the investment horizon of 90 days Zeta Global Holdings is expected to generate 8.53 times more return on investment than Defensive Market. However, Zeta Global is 8.53 times more volatile than Defensive Market Strategies. It trades about 0.1 of its potential returns per unit of risk. Defensive Market Strategies is currently generating about 0.32 per unit of risk. If you would invest 1,146 in Zeta Global Holdings on April 17, 2025 and sell it today you would earn a total of 258.00 from holding Zeta Global Holdings or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zeta Global Holdings vs. Defensive Market Strategies
Performance |
| Timeline |
| Zeta Global Holdings |
| Defensive Market Str |
Zeta Global and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeta Global and Defensive Market
The main advantage of trading using opposite Zeta Global and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeta Global position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| Zeta Global vs. Alkami Technology | Zeta Global vs. ON24 Inc | Zeta Global vs. Sprinklr | Zeta Global vs. Oscar Health |
| Defensive Market vs. Ab E Opportunities | Defensive Market vs. Qs Growth Fund | Defensive Market vs. Lord Abbett Diversified | Defensive Market vs. Catalyst Exceed Defined |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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