Correlation Between Zoom2u Technologies and FireFly Metals
Can any of the company-specific risk be diversified away by investing in both Zoom2u Technologies and FireFly Metals 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 Zoom2u Technologies and FireFly Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom2u Technologies and FireFly Metals, you can compare the effects of market volatilities on Zoom2u Technologies and FireFly Metals 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 Zoom2u Technologies with a short position of FireFly Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom2u Technologies and FireFly Metals.
Diversification Opportunities for Zoom2u Technologies and FireFly Metals
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoom2u and FireFly is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zoom2u Technologies and FireFly Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FireFly Metals and Zoom2u 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 Zoom2u Technologies are associated (or correlated) with FireFly Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FireFly Metals has no effect on the direction of Zoom2u Technologies i.e., Zoom2u Technologies and FireFly Metals go up and down completely randomly.
Pair Corralation between Zoom2u Technologies and FireFly Metals
Assuming the 90 days trading horizon Zoom2u Technologies is expected to generate 2.92 times less return on investment than FireFly Metals. But when comparing it to its historical volatility, Zoom2u Technologies is 1.1 times less risky than FireFly Metals. It trades about 0.01 of its potential returns per unit of risk. FireFly Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 63.00 in FireFly Metals on November 5, 2024 and sell it today you would earn a total of 30.00 from holding FireFly Metals or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoom2u Technologies vs. FireFly Metals
Performance |
| Timeline |
| Zoom2u Technologies |
| FireFly Metals |
Zoom2u Technologies and FireFly Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom2u Technologies and FireFly Metals
The main advantage of trading using opposite Zoom2u Technologies and FireFly Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom2u Technologies position performs unexpectedly, FireFly Metals 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 FireFly Metals will offset losses from the drop in FireFly Metals' long position.| Zoom2u Technologies vs. Inventis | Zoom2u Technologies vs. Pengana Private Equity | Zoom2u Technologies vs. PM Capital Global | Zoom2u Technologies vs. Macquarie Group Ltd |
| FireFly Metals vs. Northern Star Resources | FireFly Metals vs. Evolution Mining | FireFly Metals vs. Bluescope Steel | FireFly Metals vs. De Grey Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets |