Correlation Between Global Net and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Global Net and Zinc Media 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 Global Net and Zinc Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and Zinc Media Group, you can compare the effects of market volatilities on Global Net and Zinc Media 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 Global Net with a short position of Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Zinc Media.
Diversification Opportunities for Global Net and Zinc Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Zinc is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group and Global Net 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 Global Net Lease are associated (or correlated) with Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Global Net i.e., Global Net and Zinc Media go up and down completely randomly.
Pair Corralation between Global Net and Zinc Media
Assuming the 90 days trading horizon Global Net Lease is expected to under-perform the Zinc Media. But the stock apears to be less risky and, when comparing its historical volatility, Global Net Lease is 1.54 times less risky than Zinc Media. The stock trades about -0.01 of its potential returns per unit of risk. The Zinc Media Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Zinc Media Group on October 12, 2024 and sell it today you would earn a total of 650.00 from holding Zinc Media Group or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Net Lease vs. Zinc Media Group
Performance |
| Timeline |
| Global Net Lease |
| Zinc Media Group |
Global Net and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Zinc Media
The main advantage of trading using opposite Global Net and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Global Net vs. Wyndham Hotels Resorts | Global Net vs. GoldMining | Global Net vs. SBM Offshore NV | Global Net vs. Solstad Offshore ASA |
| Zinc Media vs. Griffin Mining | Zinc Media vs. GoldMining | Zinc Media vs. Global Net Lease | Zinc Media vs. Eastinco Mining Exploration |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |