Correlation Between Zscaler and PagSeguro Digital

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

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

Diversification Opportunities for Zscaler and PagSeguro Digital

0.73

Correlation Coefficient

Zscaler  PagSeguro Digital

Poor diversification

The 3 months correlation between Zscaler and PagSeguro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zscaler and PagSeguro Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PagSeguro Digital and Zscaler 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 Zscaler are associated (or correlated) with PagSeguro Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PagSeguro Digital has no effect on the direction of Zscaler i.e., Zscaler and PagSeguro Digital go up and down completely randomly.

Pair Corralation between Zscaler and PagSeguro Digital

Allowing for the 90-day total investment horizon Zscaler is expected to generate 0.96 times more return on investment than PagSeguro Digital. However, Zscaler is 1.04 times less risky than PagSeguro Digital. It trades about 0.16 of its potential returns per unit of risk. PagSeguro Digital is currently generating about 0.05 per unit of risk. If you would invest  20,395  in Zscaler on February 17, 2025 and sell it today you would earn a total of  4,755  from holding Zscaler or generate 23.31% return on investment over 90 days.

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

Zscaler  vs.  PagSeguro Digital

Zscaler

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zscaler are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Zscaler unveiled solid returns over the last few months and may actually be approaching a breakup point.

PagSeguro Digital

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PagSeguro Digital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, PagSeguro Digital may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Zscaler and PagSeguro Digital

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

The idea behind Zscaler and PagSeguro Digital 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.