Correlation Between Globe Trade and ZINZINO AB
Can any of the company-specific risk be diversified away by investing in both Globe Trade and ZINZINO AB 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 Globe Trade and ZINZINO AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and ZINZINO AB B, you can compare the effects of market volatilities on Globe Trade and ZINZINO AB 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 Globe Trade with a short position of ZINZINO AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and ZINZINO AB.
Diversification Opportunities for Globe Trade and ZINZINO AB
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Globe and ZINZINO is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and ZINZINO AB B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINZINO AB B and Globe Trade 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 Globe Trade Centre are associated (or correlated) with ZINZINO AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINZINO AB B has no effect on the direction of Globe Trade i.e., Globe Trade and ZINZINO AB go up and down completely randomly.
Pair Corralation between Globe Trade and ZINZINO AB
Assuming the 90 days trading horizon Globe Trade Centre is expected to generate 0.12 times more return on investment than ZINZINO AB. However, Globe Trade Centre is 8.11 times less risky than ZINZINO AB. It trades about -0.29 of its potential returns per unit of risk. ZINZINO AB B is currently generating about -0.14 per unit of risk. If you would invest 101.00 in Globe Trade Centre on September 12, 2024 and sell it today you would lose (3.00) from holding Globe Trade Centre or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. ZINZINO AB B
Performance |
| Timeline |
| Globe Trade Centre |
| ZINZINO AB B |
Globe Trade and ZINZINO AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and ZINZINO AB
The main advantage of trading using opposite Globe Trade and ZINZINO AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, ZINZINO AB 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 ZINZINO AB will offset losses from the drop in ZINZINO AB's long position.| Globe Trade vs. Apple Inc | Globe Trade vs. Apple Inc | Globe Trade vs. Apple Inc | Globe Trade vs. Apple Inc |
| ZINZINO AB vs. MCEWEN MINING INC | ZINZINO AB vs. COLUMBIA SPORTSWEAR | ZINZINO AB vs. Jacquet Metal Service | ZINZINO AB vs. USWE SPORTS 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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