Correlation Between Energean Oil and Zanaga Iron
Can any of the company-specific risk be diversified away by investing in both Energean Oil and Zanaga Iron 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 Energean Oil and Zanaga Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energean Oil Gas and Zanaga Iron Ore, you can compare the effects of market volatilities on Energean Oil and Zanaga Iron 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 Energean Oil with a short position of Zanaga Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energean Oil and Zanaga Iron.
Diversification Opportunities for Energean Oil and Zanaga Iron
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Energean and Zanaga is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Energean Oil Gas and Zanaga Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zanaga Iron Ore and Energean Oil 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 Energean Oil Gas are associated (or correlated) with Zanaga Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zanaga Iron Ore has no effect on the direction of Energean Oil i.e., Energean Oil and Zanaga Iron go up and down completely randomly.
Pair Corralation between Energean Oil and Zanaga Iron
Assuming the 90 days trading horizon Energean Oil is expected to generate 13.35 times less return on investment than Zanaga Iron. But when comparing it to its historical volatility, Energean Oil Gas is 2.84 times less risky than Zanaga Iron. It trades about 0.01 of its potential returns per unit of risk. Zanaga Iron Ore is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Zanaga Iron Ore on November 2, 2024 and sell it today you would earn a total of 244.00 from holding Zanaga Iron Ore or generate 43.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energean Oil Gas vs. Zanaga Iron Ore
Performance |
| Timeline |
| Energean Oil Gas |
| Zanaga Iron Ore |
Energean Oil and Zanaga Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energean Oil and Zanaga Iron
The main advantage of trading using opposite Energean Oil and Zanaga Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energean Oil position performs unexpectedly, Zanaga Iron 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 Zanaga Iron will offset losses from the drop in Zanaga Iron's long position.| Energean Oil vs. Porvair plc | Energean Oil vs. Adriatic Metals | Energean Oil vs. Pentair PLC | Energean Oil vs. bet at home AG |
| Zanaga Iron vs. Charter Communications Cl | Zanaga Iron vs. Xeros Technology Group | Zanaga Iron vs. Aeorema Communications Plc | Zanaga Iron vs. Spirent Communications plc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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