Correlation Between SenzaGen and Zaplox AB

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

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

Diversification Opportunities for SenzaGen and Zaplox AB

-0.3

Correlation Coefficient

SenzaGen  Zaplox AB

Very good diversification

The 3 months correlation between SenzaGen and Zaplox is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SenzaGen AB and Zaplox AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaplox AB and SenzaGen 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 SenzaGen 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 SenzaGen i.e., SenzaGen and Zaplox AB go up and down completely randomly.

Pair Corralation between SenzaGen and Zaplox AB

Assuming the 90 days trading horizon SenzaGen AB is expected to generate 0.76 times more return on investment than Zaplox AB. However, SenzaGen AB is 1.31 times less risky than Zaplox AB. It trades about 0.05 of its potential returns per unit of risk. Zaplox AB is currently generating about 0.02 per unit of risk. If you would invest  482.00  in SenzaGen AB on April 24, 2025 and sell it today you would earn a total of  38.00  from holding SenzaGen AB or generate 7.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

SenzaGen AB  vs.  Zaplox AB

SenzaGen AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SenzaGen AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SenzaGen unveiled solid returns over the last few months and may actually be approaching a breakup point.

Zaplox AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zaplox AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Zaplox AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SenzaGen and Zaplox AB

The main advantage of trading using opposite SenzaGen and Zaplox AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SenzaGen 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 SenzaGen 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.