Correlation Between ZIM Integrated and SEACOR Marine
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and SEACOR Marine 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 SEACOR Marine 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 SEACOR Marine Holdings, you can compare the effects of market volatilities on ZIM Integrated and SEACOR Marine 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 SEACOR Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and SEACOR Marine.
Diversification Opportunities for ZIM Integrated and SEACOR Marine
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZIM and SEACOR is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and SEACOR Marine Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEACOR Marine Holdings 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 SEACOR Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEACOR Marine Holdings has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and SEACOR Marine go up and down completely randomly.
Pair Corralation between ZIM Integrated and SEACOR Marine
Considering the 90-day investment horizon ZIM Integrated Shipping is expected to generate 0.71 times more return on investment than SEACOR Marine. However, ZIM Integrated Shipping is 1.4 times less risky than SEACOR Marine. It trades about -0.01 of its potential returns per unit of risk. SEACOR Marine Holdings is currently generating about -0.14 per unit of risk. If you would invest 2,274 in ZIM Integrated Shipping on August 28, 2024 and sell it today you would lose (51.00) from holding ZIM Integrated Shipping or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. SEACOR Marine Holdings
Performance |
| Timeline |
| ZIM Integrated Shipping |
| SEACOR Marine Holdings |
ZIM Integrated and SEACOR Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and SEACOR Marine
The main advantage of trading using opposite ZIM Integrated and SEACOR Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, SEACOR Marine 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 SEACOR Marine will offset losses from the drop in SEACOR Marine'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 |
| SEACOR Marine vs. Ranger Energy Services | SEACOR Marine vs. Emerald Expositions Events | SEACOR Marine vs. NCS Multistage Holdings | SEACOR Marine vs. Thermon Group Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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