Correlation Between Zimtu Capital and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both Zimtu Capital and Lomiko 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 Zimtu Capital and Lomiko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zimtu Capital Corp and Lomiko Metals, you can compare the effects of market volatilities on Zimtu Capital and Lomiko 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 Zimtu Capital with a short position of Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zimtu Capital and Lomiko Metals.
Diversification Opportunities for Zimtu Capital and Lomiko Metals
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zimtu and Lomiko is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zimtu Capital Corp and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals and Zimtu Capital 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 Zimtu Capital Corp are associated (or correlated) with Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of Zimtu Capital i.e., Zimtu Capital and Lomiko Metals go up and down completely randomly.
Pair Corralation between Zimtu Capital and Lomiko Metals
Given the investment horizon of 90 days Zimtu Capital Corp is expected to generate 1.44 times more return on investment than Lomiko Metals. However, Zimtu Capital is 1.44 times more volatile than Lomiko Metals. It trades about 0.1 of its potential returns per unit of risk. Lomiko Metals is currently generating about -0.14 per unit of risk. If you would invest 3.00 in Zimtu Capital Corp on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Zimtu Capital Corp or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zimtu Capital Corp vs. Lomiko Metals
Performance |
| Timeline |
| Zimtu Capital Corp |
| Lomiko Metals |
Zimtu Capital and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zimtu Capital and Lomiko Metals
The main advantage of trading using opposite Zimtu Capital and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zimtu Capital position performs unexpectedly, Lomiko 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| Zimtu Capital vs. Commerce Resources Corp | Zimtu Capital vs. Great Atlantic Resources | Zimtu Capital vs. Lomiko Metals | Zimtu Capital vs. Focus Graphite |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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