Correlation Between 2G ENERGY and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY 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 2G ENERGY and ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and ZIM Integrated Shipping, you can compare the effects of market volatilities on 2G ENERGY 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 2G ENERGY with a short position of ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and ZIM Integrated.
Diversification Opportunities for 2G ENERGY and ZIM Integrated
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 2GB and ZIM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY 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 2G ENERGY 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 2G ENERGY 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 2G ENERGY i.e., 2G ENERGY and ZIM Integrated go up and down completely randomly.
Pair Corralation between 2G ENERGY and ZIM Integrated
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the ZIM Integrated. But the stock apears to be less risky and, when comparing its historical volatility, 2G ENERGY is 1.99 times less risky than ZIM Integrated. The stock trades about -0.06 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2G ENERGY vs. ZIM Integrated Shipping
Performance |
| Timeline |
| 2G ENERGY |
| ZIM Integrated Shipping |
2G ENERGY and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and ZIM Integrated
The main advantage of trading using opposite 2G ENERGY and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY 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.| 2G ENERGY vs. FISH PAYK HEALTH | 2G ENERGY vs. GREENX METALS LTD | 2G ENERGY vs. Lion One Metals | 2G ENERGY vs. Zijin Mining Group |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |