Correlation Between ULTRA CLEAN and ZIM Integrated
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and ZIM Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and ZIM Integrated Shipping, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of ZIM Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and ZIM Integrated.
Diversification Opportunities for ULTRA CLEAN and ZIM Integrated
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ULTRA and ZIM is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS 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 ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 ULTRA CLEAN i.e., ULTRA CLEAN and ZIM Integrated go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and ZIM Integrated
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 0.59 times more return on investment than ZIM Integrated. However, ULTRA CLEAN HLDGS is 1.71 times less risky than ZIM Integrated. It trades about 0.12 of its potential returns per unit of risk. ZIM Integrated Shipping is currently generating about -0.06 per unit of risk. If you would invest 3,380 in ULTRA CLEAN HLDGS on September 13, 2024 and sell it today you would earn a total of 240.00 from holding ULTRA CLEAN HLDGS or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. ZIM Integrated Shipping
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| ZIM Integrated Shipping |
ULTRA CLEAN and ZIM Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and ZIM Integrated
The main advantage of trading using opposite ULTRA CLEAN and ZIM Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc |
| ZIM Integrated vs. United Internet AG | ZIM Integrated vs. Laureate Education | ZIM Integrated vs. Xinhua Winshare Publishing | ZIM Integrated vs. G8 EDUCATION |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |