Correlation Between Gelsenwasser and ZINZINO AB
Can any of the company-specific risk be diversified away by investing in both Gelsenwasser 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 Gelsenwasser and ZINZINO AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gelsenwasser AG and ZINZINO AB B, you can compare the effects of market volatilities on Gelsenwasser 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 Gelsenwasser with a short position of ZINZINO AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelsenwasser and ZINZINO AB.
Diversification Opportunities for Gelsenwasser and ZINZINO AB
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gelsenwasser and ZINZINO is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gelsenwasser AG 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 Gelsenwasser 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 Gelsenwasser AG 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 Gelsenwasser i.e., Gelsenwasser and ZINZINO AB go up and down completely randomly.
Pair Corralation between Gelsenwasser and ZINZINO AB
Assuming the 90 days horizon Gelsenwasser AG is expected to under-perform the ZINZINO AB. But the stock apears to be less risky and, when comparing its historical volatility, Gelsenwasser AG is 1.73 times less risky than ZINZINO AB. The stock trades about -0.03 of its potential returns per unit of risk. The ZINZINO AB B is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 129.00 in ZINZINO AB B on August 31, 2024 and sell it today you would earn a total of 621.00 from holding ZINZINO AB B or generate 481.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gelsenwasser AG vs. ZINZINO AB B
Performance |
| Timeline |
| Gelsenwasser AG |
| ZINZINO AB B |
Gelsenwasser and ZINZINO AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gelsenwasser and ZINZINO AB
The main advantage of trading using opposite Gelsenwasser and ZINZINO AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gelsenwasser 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.| Gelsenwasser vs. Austevoll Seafood ASA | Gelsenwasser vs. National Beverage Corp | Gelsenwasser vs. Tyson Foods | Gelsenwasser vs. Astral Foods Limited |
| ZINZINO AB vs. Commonwealth Bank of | ZINZINO AB vs. Austevoll Seafood ASA | ZINZINO AB vs. Cal Maine Foods | ZINZINO AB vs. AUSNUTRIA DAIRY |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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