Correlation Between HAPAG LLOYD and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both HAPAG LLOYD 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 HAPAG LLOYD and ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAPAG LLOYD UNSPADR 12 and ZIM Integrated Shipping, you can compare the effects of market volatilities on HAPAG LLOYD 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 HAPAG LLOYD with a short position of ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAPAG LLOYD and ZIM Integrated.
Diversification Opportunities for HAPAG LLOYD and ZIM Integrated
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HAPAG and ZIM is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HAPAG LLOYD UNSPADR 12 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 HAPAG LLOYD 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 HAPAG LLOYD UNSPADR 12 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 HAPAG LLOYD i.e., HAPAG LLOYD and ZIM Integrated go up and down completely randomly.
Pair Corralation between HAPAG LLOYD and ZIM Integrated
Assuming the 90 days trading horizon HAPAG LLOYD UNSPADR 12 is expected to under-perform the ZIM Integrated. But the stock apears to be less risky and, when comparing its historical volatility, HAPAG LLOYD UNSPADR 12 is 1.64 times less risky than ZIM Integrated. The stock trades about -0.13 of its potential returns per unit of risk. The ZIM Integrated Shipping is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,111 in ZIM Integrated Shipping on August 29, 2024 and sell it today you would lose (15.00) from holding ZIM Integrated Shipping or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAPAG LLOYD UNSPADR 12 vs. ZIM Integrated Shipping
Performance |
| Timeline |
| HAPAG LLOYD UNSPADR |
| ZIM Integrated Shipping |
HAPAG LLOYD and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAPAG LLOYD and ZIM Integrated
The main advantage of trading using opposite HAPAG LLOYD and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAPAG LLOYD 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.| HAPAG LLOYD vs. ZIM Integrated Shipping | HAPAG LLOYD vs. Superior Plus Corp | HAPAG LLOYD vs. NMI Holdings | HAPAG LLOYD vs. SIVERS SEMICONDUCTORS AB |
| ZIM Integrated vs. EVS Broadcast Equipment | ZIM Integrated vs. SCANSOURCE | ZIM Integrated vs. KENEDIX OFFICE INV | ZIM Integrated vs. TITANIUM TRANSPORTGROUP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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