Correlation Between Know IT and Zaplox AB

Can any of the company-specific risk be diversified away by investing in both Know IT and Zaplox AB 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 Know IT and Zaplox AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Know IT AB and Zaplox AB, you can compare the effects of market volatilities on Know IT and Zaplox AB 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 Know IT with a short position of Zaplox AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know IT and Zaplox AB.

Diversification Opportunities for Know IT and Zaplox AB

0.68

Correlation Coefficient

Know IT  Zaplox AB

Poor diversification

The 3 months correlation between Know and Zaplox is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Know IT AB and Zaplox AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaplox AB and Know IT 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 Know IT AB are associated (or correlated) with Zaplox AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaplox AB has no effect on the direction of Know IT i.e., Know IT and Zaplox AB go up and down completely randomly.

Pair Corralation between Know IT and Zaplox AB

Assuming the 90 days trading horizon Know IT AB is expected to generate 0.22 times more return on investment than Zaplox AB. However, Know IT AB is 4.46 times less risky than Zaplox AB. It trades about -0.16 of its potential returns per unit of risk. Zaplox AB is currently generating about -0.07 per unit of risk. If you would invest  14,266  in Know IT AB on April 22, 2025 and sell it today you would lose (1,986) from holding Know IT AB or give up 13.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Know IT AB  vs.  Zaplox AB

Know IT AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Know IT AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Zaplox AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zaplox AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Know IT and Zaplox AB

The main advantage of trading using opposite Know IT and Zaplox AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know IT position performs unexpectedly, Zaplox AB 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 Zaplox AB will offset losses from the drop in Zaplox AB's long position.

The idea behind Know IT AB and Zaplox AB 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.