Correlation Between ZIM Integrated and Capital Clean
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and Capital Clean 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 ZIM Integrated and Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZIM Integrated Shipping and Capital Clean Energy, you can compare the effects of market volatilities on ZIM Integrated and Capital Clean 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 ZIM Integrated with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and Capital Clean.
Diversification Opportunities for ZIM Integrated and Capital Clean
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZIM and Capital is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy and ZIM Integrated 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 ZIM Integrated Shipping are associated (or correlated) with Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and Capital Clean go up and down completely randomly.
Pair Corralation between ZIM Integrated and Capital Clean
Considering the 90-day investment horizon ZIM Integrated Shipping is expected to generate 2.24 times more return on investment than Capital Clean. However, ZIM Integrated is 2.24 times more volatile than Capital Clean Energy. It trades about 0.08 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.04 per unit of risk. If you would invest 1,827 in ZIM Integrated Shipping on August 30, 2024 and sell it today you would earn a total of 383.00 from holding ZIM Integrated Shipping or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. Capital Clean Energy
Performance |
| Timeline |
| ZIM Integrated Shipping |
| Capital Clean Energy |
ZIM Integrated and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and Capital Clean
The main advantage of trading using opposite ZIM Integrated and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| ZIM Integrated vs. Golden Ocean Group | ZIM Integrated vs. Genco Shipping Trading | ZIM Integrated vs. Global Ship Lease | ZIM Integrated vs. Diana Shipping |
| Capital Clean vs. Mink Therapeutics | Capital Clean vs. EvoAir Holdings | Capital Clean vs. Mind Medicine | Capital Clean vs. Westinghouse Air Brake |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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