Correlation Between FTX Token and ZB

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FTX Token and ZB 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 FTX Token and ZB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTX Token and ZB, you can compare the effects of market volatilities on FTX Token and ZB 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 FTX Token with a short position of ZB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTX Token and ZB.

Diversification Opportunities for FTX Token and ZB

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between FTX and ZB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding FTX Token and ZB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZB and FTX Token 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 FTX Token are associated (or correlated) with ZB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZB has no effect on the direction of FTX Token i.e., FTX Token and ZB go up and down completely randomly.

Pair Corralation between FTX Token and ZB

Assuming the 90 days trading horizon FTX Token is expected to generate 6.9 times less return on investment than ZB. But when comparing it to its historical volatility, FTX Token is 1.15 times less risky than ZB. It trades about 0.01 of its potential returns per unit of risk. ZB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  17.00  in ZB on December 30, 2023 and sell it today you would earn a total of  27.00  from holding ZB or generate 158.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy74.46%
ValuesDaily Returns

FTX Token  vs.  ZB

 Performance 
       Timeline  
FTX Token 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days FTX Token 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 Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for FTX Token shareholders.
ZB 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days ZB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ZB is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

FTX Token and ZB Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTX Token and ZB

The main advantage of trading using opposite FTX Token and ZB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTX Token position performs unexpectedly, ZB 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 ZB will offset losses from the drop in ZB's long position.
The idea behind FTX Token and ZB 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Stocks Directory
Find actively traded stocks across global markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments