Correlation Between ZINZINO AB and Globe Trade
Can any of the company-specific risk be diversified away by investing in both ZINZINO AB and Globe Trade 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 ZINZINO AB and Globe Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINZINO AB B and Globe Trade Centre, you can compare the effects of market volatilities on ZINZINO AB and Globe Trade 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 ZINZINO AB with a short position of Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINZINO AB and Globe Trade.
Diversification Opportunities for ZINZINO AB and Globe Trade
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZINZINO and Globe is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ZINZINO AB B and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre and ZINZINO AB 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 ZINZINO AB B are associated (or correlated) with Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of ZINZINO AB i.e., ZINZINO AB and Globe Trade go up and down completely randomly.
Pair Corralation between ZINZINO AB and Globe Trade
Assuming the 90 days horizon ZINZINO AB B is expected to generate 3.02 times more return on investment than Globe Trade. However, ZINZINO AB is 3.02 times more volatile than Globe Trade Centre. It trades about 0.09 of its potential returns per unit of risk. Globe Trade Centre is currently generating about 0.03 per unit of risk. If you would invest 288.00 in ZINZINO AB B on September 4, 2024 and sell it today you would earn a total of 451.00 from holding ZINZINO AB B or generate 156.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINZINO AB B vs. Globe Trade Centre
Performance |
| Timeline |
| ZINZINO AB B |
| Globe Trade Centre |
ZINZINO AB and Globe Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINZINO AB and Globe Trade
The main advantage of trading using opposite ZINZINO AB and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINZINO AB position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.| ZINZINO AB vs. Globe Trade Centre | ZINZINO AB vs. Vastned Retail NV | ZINZINO AB vs. GEAR4MUSIC LS 10 | ZINZINO AB vs. Zoom Video Communications |
| Globe Trade vs. TOTAL GABON | Globe Trade vs. Walgreens Boots Alliance | Globe Trade vs. Peak Resources Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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