Correlation Between Nice Information and Zinus
Can any of the company-specific risk be diversified away by investing in both Nice Information and Zinus 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 Nice Information and Zinus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and Zinus Inc, you can compare the effects of market volatilities on Nice Information and Zinus 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 Nice Information with a short position of Zinus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Zinus.
Diversification Opportunities for Nice Information and Zinus
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nice and Zinus is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Zinus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinus Inc and Nice Information 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 Nice Information Telecommunication are associated (or correlated) with Zinus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinus Inc has no effect on the direction of Nice Information i.e., Nice Information and Zinus go up and down completely randomly.
Pair Corralation between Nice Information and Zinus
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to under-perform the Zinus. But the stock apears to be less risky and, when comparing its historical volatility, Nice Information Telecommunication is 3.7 times less risky than Zinus. The stock trades about -0.09 of its potential returns per unit of risk. The Zinus Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,368,182 in Zinus Inc on October 26, 2024 and sell it today you would earn a total of 751,818 from holding Zinus Inc or generate 54.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Zinus Inc
Performance |
| Timeline |
| Nice Information Tel |
| Zinus Inc |
Nice Information and Zinus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Zinus
The main advantage of trading using opposite Nice Information and Zinus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Zinus 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 Zinus will offset losses from the drop in Zinus' long position.| Nice Information vs. Soulbrain Holdings Co | Nice Information vs. NICE Total Cash | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV Co |
| Zinus vs. Grand Korea Leisure | Zinus vs. Alton Sports CoLtd | Zinus vs. Samyung Trading Co | Zinus vs. PlayD Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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