Correlation Between ZIM Integrated and Magic Software
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and Magic Software 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 Magic Software 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 Magic Software Enterprises, you can compare the effects of market volatilities on ZIM Integrated and Magic Software 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 Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and Magic Software.
Diversification Opportunities for ZIM Integrated and Magic Software
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZIM and Magic is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and Magic Software Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Software Enter 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 Magic Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Software Enter has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and Magic Software go up and down completely randomly.
Pair Corralation between ZIM Integrated and Magic Software
If you would invest 1,357 in Magic Software Enterprises on September 5, 2024 and sell it today you would lose (187.00) from holding Magic Software Enterprises or give up 13.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.2% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. Magic Software Enterprises
Performance |
| Timeline |
| ZIM Integrated Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Magic Software Enter |
ZIM Integrated and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and Magic Software
The main advantage of trading using opposite ZIM Integrated and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, Magic Software 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 Magic Software will offset losses from the drop in Magic Software's long position.| ZIM Integrated vs. NAKED WINES PLC | ZIM Integrated vs. VIVA WINE GROUP | ZIM Integrated vs. ALERION CLEANPOWER | ZIM Integrated vs. ULTRA CLEAN HLDGS |
| Magic Software vs. Superior Plus Corp | Magic Software vs. NMI Holdings | Magic Software vs. Origin Agritech | Magic Software vs. SIVERS SEMICONDUCTORS AB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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