Correlation Between FARM 51 and ZINC MEDIA
Can any of the company-specific risk be diversified away by investing in both FARM 51 and ZINC MEDIA 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 FARM 51 and ZINC MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FARM 51 GROUP and ZINC MEDIA GR, you can compare the effects of market volatilities on FARM 51 and ZINC MEDIA 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 FARM 51 with a short position of ZINC MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARM 51 and ZINC MEDIA.
Diversification Opportunities for FARM 51 and ZINC MEDIA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FARM and ZINC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding FARM 51 GROUP and ZINC MEDIA GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINC MEDIA GR and FARM 51 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 FARM 51 GROUP are associated (or correlated) with ZINC MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINC MEDIA GR has no effect on the direction of FARM 51 i.e., FARM 51 and ZINC MEDIA go up and down completely randomly.
Pair Corralation between FARM 51 and ZINC MEDIA
Assuming the 90 days horizon FARM 51 is expected to generate 3.48 times less return on investment than ZINC MEDIA. But when comparing it to its historical volatility, FARM 51 GROUP is 1.28 times less risky than ZINC MEDIA. It trades about 0.08 of its potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 57.00 in ZINC MEDIA GR on October 29, 2024 and sell it today you would earn a total of 6.00 from holding ZINC MEDIA GR or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FARM 51 GROUP vs. ZINC MEDIA GR
Performance |
| Timeline |
| FARM 51 GROUP |
| ZINC MEDIA GR |
FARM 51 and ZINC MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARM 51 and ZINC MEDIA
The main advantage of trading using opposite FARM 51 and ZINC MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARM 51 position performs unexpectedly, ZINC MEDIA 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 ZINC MEDIA will offset losses from the drop in ZINC MEDIA's long position.| FARM 51 vs. COMBA TELECOM SYST | FARM 51 vs. Chunghwa Telecom Co | FARM 51 vs. Geely Automobile Holdings | FARM 51 vs. Commercial Vehicle Group |
| ZINC MEDIA vs. Japan Medical Dynamic | ZINC MEDIA vs. Advanced Medical Solutions | ZINC MEDIA vs. KENEDIX OFFICE INV | ZINC MEDIA vs. PEPTONIC MEDICAL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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