Correlation Between ZIM Integrated and AWILCO LNG
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and AWILCO LNG 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 AWILCO LNG 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 AWILCO LNG NK, you can compare the effects of market volatilities on ZIM Integrated and AWILCO LNG 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 AWILCO LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and AWILCO LNG.
Diversification Opportunities for ZIM Integrated and AWILCO LNG
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZIM and AWILCO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and AWILCO LNG NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AWILCO LNG NK 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 AWILCO LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AWILCO LNG NK has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and AWILCO LNG go up and down completely randomly.
Pair Corralation between ZIM Integrated and AWILCO LNG
Assuming the 90 days horizon ZIM Integrated Shipping is expected to generate 1.08 times more return on investment than AWILCO LNG. However, ZIM Integrated is 1.08 times more volatile than AWILCO LNG NK. It trades about 0.09 of its potential returns per unit of risk. AWILCO LNG NK is currently generating about 0.0 per unit of risk. If you would invest 696.00 in ZIM Integrated Shipping on September 14, 2024 and sell it today you would earn a total of 1,103 from holding ZIM Integrated Shipping or generate 158.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. AWILCO LNG NK
Performance |
| Timeline |
| ZIM Integrated Shipping |
| AWILCO LNG NK |
ZIM Integrated and AWILCO LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and AWILCO LNG
The main advantage of trading using opposite ZIM Integrated and AWILCO LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, AWILCO LNG 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 AWILCO LNG will offset losses from the drop in AWILCO LNG's long position.| ZIM Integrated vs. H FARM SPA | ZIM Integrated vs. CENTURIA OFFICE REIT | ZIM Integrated vs. Titan Machinery | ZIM Integrated vs. Dairy Farm International |
| AWILCO LNG vs. Superior Plus Corp | AWILCO LNG vs. SIVERS SEMICONDUCTORS AB | AWILCO LNG vs. CHINA HUARONG ENERHD 50 | AWILCO LNG vs. NORDIC HALIBUT AS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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