Correlation Between GREENX METALS and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and ZIM Integrated Shipping, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and ZIM Integrated.
Diversification Opportunities for GREENX METALS and ZIM Integrated
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and ZIM is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD 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 GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and ZIM Integrated go up and down completely randomly.
Pair Corralation between GREENX METALS and ZIM Integrated
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the ZIM Integrated. But the stock apears to be less risky and, when comparing its historical volatility, GREENX METALS LTD is 1.49 times less risky than ZIM Integrated. The stock trades about -0.21 of its potential returns per unit of risk. The ZIM Integrated Shipping is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,262 in ZIM Integrated Shipping on September 3, 2024 and sell it today you would lose (125.00) from holding ZIM Integrated Shipping or give up 5.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. ZIM Integrated Shipping
Performance |
| Timeline |
| GREENX METALS LTD |
| ZIM Integrated Shipping |
GREENX METALS and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and ZIM Integrated
The main advantage of trading using opposite GREENX METALS and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. AJ LUCAS GROUP | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings |
| ZIM Integrated vs. BW LPG Limited | ZIM Integrated vs. Wilh Wilhelmsen Holding | ZIM Integrated vs. Superior Plus Corp | ZIM Integrated vs. NMI Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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