Correlation Between ZIM Integrated and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and GAMING FAC 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 ZIM Integrated and GAMING FAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZIM Integrated Shipping and GAMING FAC SA, you can compare the effects of market volatilities on ZIM Integrated and GAMING FAC 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 ZIM Integrated with a short position of GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and GAMING FAC.
Diversification Opportunities for ZIM Integrated and GAMING FAC
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZIM and GAMING is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA and ZIM Integrated 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 ZIM Integrated Shipping are associated (or correlated) with GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and GAMING FAC go up and down completely randomly.
Pair Corralation between ZIM Integrated and GAMING FAC
Assuming the 90 days horizon ZIM Integrated Shipping is expected to generate 1.18 times more return on investment than GAMING FAC. However, ZIM Integrated is 1.18 times more volatile than GAMING FAC SA. It trades about 0.25 of its potential returns per unit of risk. GAMING FAC SA is currently generating about 0.09 per unit of risk. If you would invest 1,580 in ZIM Integrated Shipping on November 28, 2024 and sell it today you would earn a total of 428.00 from holding ZIM Integrated Shipping or generate 27.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. GAMING FAC SA
Performance |
| Timeline |
| ZIM Integrated Shipping |
| GAMING FAC SA |
ZIM Integrated and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and GAMING FAC
The main advantage of trading using opposite ZIM Integrated and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| ZIM Integrated vs. BURLINGTON STORES | ZIM Integrated vs. Burlington Stores | ZIM Integrated vs. Kaufman Broad SA | ZIM Integrated vs. Gold Road Resources |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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