Correlation Between Porto Seguro and ZoomInfo Technologies

Can any of the company-specific risk be diversified away by investing in both Porto Seguro and ZoomInfo Technologies 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 Porto Seguro and ZoomInfo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Porto Seguro SA and ZoomInfo Technologies, you can compare the effects of market volatilities on Porto Seguro and ZoomInfo Technologies 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 Porto Seguro with a short position of ZoomInfo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porto Seguro and ZoomInfo Technologies.

Diversification Opportunities for Porto Seguro and ZoomInfo Technologies

0.86

Correlation Coefficient

Porto Seguro  ZoomInfo Technologies

Very poor diversification

The 3 months correlation between Porto and ZoomInfo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Porto Seguro SA and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies and Porto Seguro 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 Porto Seguro SA are associated (or correlated) with ZoomInfo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomInfo Technologies has no effect on the direction of Porto Seguro i.e., Porto Seguro and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between Porto Seguro and ZoomInfo Technologies

Assuming the 90 days trading horizon Porto Seguro SA is expected to generate 0.67 times more return on investment than ZoomInfo Technologies. However, Porto Seguro SA is 1.49 times less risky than ZoomInfo Technologies. It trades about 0.23 of its potential returns per unit of risk. ZoomInfo Technologies is currently generating about 0.12 per unit of risk. If you would invest  4,123  in Porto Seguro SA on April 23, 2025 and sell it today you would earn a total of  1,082  from holding Porto Seguro SA or generate 26.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	90.48%
Values	Daily Returns

Porto Seguro SA  vs.  ZoomInfo Technologies

Porto Seguro SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Porto Seguro SA are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Porto Seguro unveiled solid returns over the last few months and may actually be approaching a breakup point.

ZoomInfo Technologies

Risk-Adjusted Performance

OK

Over the last 90 days ZoomInfo Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak forward indicators, ZoomInfo Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Porto Seguro and ZoomInfo Technologies

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

The idea behind Porto Seguro SA and ZoomInfo Technologies 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.