Correlation Between ZKB Gold and ZKB Gold
Can any of the company-specific risk be diversified away by investing in both ZKB Gold and ZKB Gold 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 ZKB Gold and ZKB Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZKB Gold ETF and ZKB Gold ETF, you can compare the effects of market volatilities on ZKB Gold and ZKB Gold 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 ZKB Gold with a short position of ZKB Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Gold and ZKB Gold.
Diversification Opportunities for ZKB Gold and ZKB Gold
Very weak diversification
The 3 months correlation between ZKB and ZKB is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Gold ETF and ZKB Gold ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Gold ETF and ZKB Gold 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 ZKB Gold ETF are associated (or correlated) with ZKB Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Gold ETF has no effect on the direction of ZKB Gold i.e., ZKB Gold and ZKB Gold go up and down completely randomly.
Pair Corralation between ZKB Gold and ZKB Gold
Assuming the 90 days trading horizon ZKB Gold ETF is expected to generate 0.79 times more return on investment than ZKB Gold. However, ZKB Gold ETF is 1.26 times less risky than ZKB Gold. It trades about 0.36 of its potential returns per unit of risk. ZKB Gold ETF is currently generating about 0.25 per unit of risk. If you would invest 132,680 in ZKB Gold ETF on October 20, 2024 and sell it today you would earn a total of 6,420 from holding ZKB Gold ETF or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZKB Gold ETF vs. ZKB Gold ETF
Performance |
| Timeline |
| ZKB Gold ETF |
| ZKB Gold ETF |
ZKB Gold and ZKB Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZKB Gold and ZKB Gold
The main advantage of trading using opposite ZKB Gold and ZKB Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Gold position performs unexpectedly, ZKB Gold 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 ZKB Gold will offset losses from the drop in ZKB Gold's long position.The idea behind ZKB Gold ETF and ZKB Gold ETF 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.| ZKB Gold vs. UBSFund Solutions MSCI | ZKB Gold vs. Vanguard SP 500 | ZKB Gold vs. iShares Core SP | ZKB Gold vs. Lyxor Japan UCITS |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |