Correlation Between ORMAT TECHNOLOGIES and ZINC MEDIA
Can any of the company-specific risk be diversified away by investing in both ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES and ZINC MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORMAT TECHNOLOGIES and ZINC MEDIA GR, you can compare the effects of market volatilities on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES with a short position of ZINC MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORMAT TECHNOLOGIES and ZINC MEDIA.
Diversification Opportunities for ORMAT TECHNOLOGIES and ZINC MEDIA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ORMAT and ZINC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and ZINC MEDIA go up and down completely randomly.
Pair Corralation between ORMAT TECHNOLOGIES and ZINC MEDIA
Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to generate 1.28 times more return on investment than ZINC MEDIA. However, ORMAT TECHNOLOGIES is 1.28 times more volatile than ZINC MEDIA GR. It trades about 0.13 of its potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.01 per unit of risk. If you would invest 6,222 in ORMAT TECHNOLOGIES on December 11, 2024 and sell it today you would earn a total of 306.00 from holding ORMAT TECHNOLOGIES or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORMAT TECHNOLOGIES vs. ZINC MEDIA GR
Performance |
| Timeline |
| ORMAT TECHNOLOGIES |
| ZINC MEDIA GR |
ORMAT TECHNOLOGIES and ZINC MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORMAT TECHNOLOGIES and ZINC MEDIA
The main advantage of trading using opposite ORMAT TECHNOLOGIES and ZINC MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES 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.| ORMAT TECHNOLOGIES vs. GREENX METALS LTD | ORMAT TECHNOLOGIES vs. Perseus Mining Limited | ORMAT TECHNOLOGIES vs. GOLDQUEST MINING | ORMAT TECHNOLOGIES vs. CORNISH METALS INC |
| ZINC MEDIA vs. WESANA HEALTH HOLD | ZINC MEDIA vs. CARDINAL HEALTH | ZINC MEDIA vs. CVS Health | ZINC MEDIA vs. NORDHEALTH AS NK |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |