Correlation Between Zinwell and CyberTAN Technology
Can any of the company-specific risk be diversified away by investing in both Zinwell and CyberTAN Technology 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 Zinwell and CyberTAN Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinwell and CyberTAN Technology, you can compare the effects of market volatilities on Zinwell and CyberTAN Technology 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 Zinwell with a short position of CyberTAN Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinwell and CyberTAN Technology.
Diversification Opportunities for Zinwell and CyberTAN Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zinwell and CyberTAN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zinwell and CyberTAN Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberTAN Technology and Zinwell 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 Zinwell are associated (or correlated) with CyberTAN Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberTAN Technology has no effect on the direction of Zinwell i.e., Zinwell and CyberTAN Technology go up and down completely randomly.
Pair Corralation between Zinwell and CyberTAN Technology
Assuming the 90 days trading horizon Zinwell is expected to generate 0.74 times more return on investment than CyberTAN Technology. However, Zinwell is 1.35 times less risky than CyberTAN Technology. It trades about 0.15 of its potential returns per unit of risk. CyberTAN Technology is currently generating about 0.04 per unit of risk. If you would invest 1,490 in Zinwell on November 28, 2024 and sell it today you would earn a total of 50.00 from holding Zinwell or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinwell vs. CyberTAN Technology
Performance |
| Timeline |
| Zinwell |
| CyberTAN Technology |
Zinwell and CyberTAN Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinwell and CyberTAN Technology
The main advantage of trading using opposite Zinwell and CyberTAN Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinwell position performs unexpectedly, CyberTAN Technology 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 CyberTAN Technology will offset losses from the drop in CyberTAN Technology's long position.| Zinwell vs. Clevo Co | Zinwell vs. D Link Corp | Zinwell vs. Cheng Uei Precision | Zinwell vs. Senao International Co |
| CyberTAN Technology vs. Gemtek Technology Co | CyberTAN Technology vs. Alpha Networks | CyberTAN Technology vs. Pan International Industrial Corp | CyberTAN Technology vs. D Link Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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