Correlation Between Zeta Global and Methode Electronics
Can any of the company-specific risk be diversified away by investing in both Zeta Global and Methode Electronics 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 Methode Electronics 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 Methode Electronics, you can compare the effects of market volatilities on Zeta Global and Methode Electronics 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 Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeta Global and Methode Electronics.
Diversification Opportunities for Zeta Global and Methode Electronics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zeta and Methode is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zeta Global Holdings and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics 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 Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of Zeta Global i.e., Zeta Global and Methode Electronics go up and down completely randomly.
Pair Corralation between Zeta Global and Methode Electronics
Given the investment horizon of 90 days Zeta Global Holdings is expected to generate 1.21 times more return on investment than Methode Electronics. However, Zeta Global is 1.21 times more volatile than Methode Electronics. It trades about 0.15 of its potential returns per unit of risk. Methode Electronics is currently generating about 0.02 per unit of risk. If you would invest 1,309 in Zeta Global Holdings on May 29, 2025 and sell it today you would earn a total of 683.00 from holding Zeta Global Holdings or generate 52.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zeta Global Holdings vs. Methode Electronics
Performance |
| Timeline |
| Zeta Global Holdings |
| Methode Electronics |
Zeta Global and Methode Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeta Global and Methode Electronics
The main advantage of trading using opposite Zeta Global and Methode Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeta Global position performs unexpectedly, Methode Electronics 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 Methode Electronics will offset losses from the drop in Methode Electronics' long position.| Zeta Global vs. EverCommerce | Zeta Global vs. AvidXchange Holdings | Zeta Global vs. CS Disco LLC | Zeta Global vs. VTEX |
| Methode Electronics vs. Sanmina | Methode Electronics vs. Benchmark Electronics | Methode Electronics vs. OSI Systems | Methode Electronics vs. Celestica |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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