Correlation Between Zebra Technologies and Minim
Can any of the company-specific risk be diversified away by investing in both Zebra Technologies and Minim 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 Zebra Technologies and Minim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and Minim Inc, you can compare the effects of market volatilities on Zebra Technologies and Minim 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 Zebra Technologies with a short position of Minim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and Minim.
Diversification Opportunities for Zebra Technologies and Minim
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zebra and Minim is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and Zebra 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 Zebra Technologies are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of Zebra Technologies i.e., Zebra Technologies and Minim go up and down completely randomly.
Pair Corralation between Zebra Technologies and Minim
Given the investment horizon of 90 days Zebra Technologies is expected to generate 15.76 times less return on investment than Minim. But when comparing it to its historical volatility, Zebra Technologies is 10.86 times less risky than Minim. It trades about 0.03 of its potential returns per unit of risk. Minim Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Minim Inc on August 27, 2024 and sell it today you would lose (414.00) from holding Minim Inc or give up 61.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.1% |
| Values | Daily Returns |
Zebra Technologies vs. Minim Inc
Performance |
| Timeline |
| Zebra Technologies |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zebra Technologies and Minim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zebra Technologies and Minim
The main advantage of trading using opposite Zebra Technologies and Minim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies position performs unexpectedly, Minim 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 Minim will offset losses from the drop in Minim's long position.| Zebra Technologies vs. Plexus Corp | Zebra Technologies vs. Jabil Circuit | Zebra Technologies vs. Sanmina | Zebra Technologies vs. Methode Electronics |
| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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