Correlation Between DFDS AS and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both DFDS AS and ZIM Integrated 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 DFDS AS and ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFDS AS and ZIM Integrated Shipping, you can compare the effects of market volatilities on DFDS AS and ZIM Integrated 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 DFDS AS with a short position of ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and ZIM Integrated.
Diversification Opportunities for DFDS AS and ZIM Integrated
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DFDS and ZIM is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding DFDS AS and ZIM Integrated Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIM Integrated Shipping and DFDS AS 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 DFDS AS are associated (or correlated) with ZIM Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIM Integrated Shipping has no effect on the direction of DFDS AS i.e., DFDS AS and ZIM Integrated go up and down completely randomly.
Pair Corralation between DFDS AS and ZIM Integrated
Assuming the 90 days horizon DFDS AS is expected to under-perform the ZIM Integrated. But the stock apears to be less risky and, when comparing its historical volatility, DFDS AS is 2.18 times less risky than ZIM Integrated. The stock trades about -0.2 of its potential returns per unit of risk. The ZIM Integrated Shipping is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,111 in ZIM Integrated Shipping on August 29, 2024 and sell it today you would lose (15.00) from holding ZIM Integrated Shipping or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DFDS AS vs. ZIM Integrated Shipping
Performance |
| Timeline |
| DFDS AS |
| ZIM Integrated Shipping |
DFDS AS and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFDS AS and ZIM Integrated
The main advantage of trading using opposite DFDS AS and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFDS AS position performs unexpectedly, ZIM Integrated 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 ZIM Integrated will offset losses from the drop in ZIM Integrated's long position.| DFDS AS vs. ZIM Integrated Shipping | DFDS AS vs. Superior Plus Corp | DFDS AS vs. NMI Holdings | DFDS AS vs. SIVERS SEMICONDUCTORS AB |
| ZIM Integrated vs. EVS Broadcast Equipment | ZIM Integrated vs. SCANSOURCE | ZIM Integrated vs. KENEDIX OFFICE INV | ZIM Integrated vs. TITANIUM TRANSPORTGROUP |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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