Correlation Between Didi Global and ZoomInfo Technologies

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

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

Diversification Opportunities for Didi Global and ZoomInfo Technologies

-0.8

Correlation Coefficient

Didi Global  ZoomInfo Technologies

Pay attention - limited upside

The 3 months correlation between Didi and ZoomInfo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Didi Global ADR and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies and Didi Global 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 Didi Global ADR 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 Didi Global i.e., Didi Global and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between Didi Global and ZoomInfo Technologies

If you would invest  435.00  in Didi Global ADR on June 16, 2024 and sell it today you would earn a total of  0.00  from holding Didi Global ADR or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	0.3%
Values	Daily Returns

Didi Global ADR  vs.  ZoomInfo Technologies

Didi Global ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Didi Global ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Didi Global is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

ZoomInfo Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZoomInfo Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Didi Global and ZoomInfo Technologies

The main advantage of trading using opposite Didi Global and ZoomInfo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Didi Global 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 Didi Global ADR 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.