Correlation Between ZINC MEDIA and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both ZINC MEDIA and TIMES CHINA 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 ZINC MEDIA and TIMES CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINC MEDIA GR and TIMES CHINA HLDGS, you can compare the effects of market volatilities on ZINC MEDIA and TIMES CHINA 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 ZINC MEDIA with a short position of TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINC MEDIA and TIMES CHINA.
Diversification Opportunities for ZINC MEDIA and TIMES CHINA
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZINC and TIMES is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ZINC MEDIA GR and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS and ZINC MEDIA 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 ZINC MEDIA GR are associated (or correlated) with TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of ZINC MEDIA i.e., ZINC MEDIA and TIMES CHINA go up and down completely randomly.
Pair Corralation between ZINC MEDIA and TIMES CHINA
Assuming the 90 days trading horizon ZINC MEDIA GR is expected to under-perform the TIMES CHINA. But the stock apears to be less risky and, when comparing its historical volatility, ZINC MEDIA GR is 6.66 times less risky than TIMES CHINA. The stock trades about -0.03 of its potential returns per unit of risk. The TIMES CHINA HLDGS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17.00 in TIMES CHINA HLDGS on September 13, 2024 and sell it today you would lose (13.75) from holding TIMES CHINA HLDGS or give up 80.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINC MEDIA GR vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| ZINC MEDIA GR |
| TIMES CHINA HLDGS |
ZINC MEDIA and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINC MEDIA and TIMES CHINA
The main advantage of trading using opposite ZINC MEDIA and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINC MEDIA position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.The idea behind ZINC MEDIA GR and TIMES CHINA HLDGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| TIMES CHINA vs. Hollywood Bowl Group | TIMES CHINA vs. ZINC MEDIA GR | TIMES CHINA vs. Universal Entertainment | TIMES CHINA vs. DISTRICT METALS |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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