Correlation Between ZIM Integrated and Western Bulk
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and Western Bulk 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 Western Bulk 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 Western Bulk Chartering, you can compare the effects of market volatilities on ZIM Integrated and Western Bulk 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 Western Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and Western Bulk.
Diversification Opportunities for ZIM Integrated and Western Bulk
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZIM and Western is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and Western Bulk Chartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Bulk Chartering 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 Western Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Bulk Chartering has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and Western Bulk go up and down completely randomly.
Pair Corralation between ZIM Integrated and Western Bulk
Considering the 90-day investment horizon ZIM Integrated Shipping is expected to generate 1.86 times more return on investment than Western Bulk. However, ZIM Integrated is 1.86 times more volatile than Western Bulk Chartering. It trades about 0.03 of its potential returns per unit of risk. Western Bulk Chartering is currently generating about -0.11 per unit of risk. If you would invest 1,890 in ZIM Integrated Shipping on September 3, 2024 and sell it today you would earn a total of 91.00 from holding ZIM Integrated Shipping or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. Western Bulk Chartering
Performance |
| Timeline |
| ZIM Integrated Shipping |
| Western Bulk Chartering |
ZIM Integrated and Western Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and Western Bulk
The main advantage of trading using opposite ZIM Integrated and Western Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, Western Bulk 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 Western Bulk will offset losses from the drop in Western Bulk'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 |
| Western Bulk vs. SITC International Holdings | Western Bulk vs. Pacific Basin Shipping | Western Bulk vs. SITC International Holdings | Western Bulk vs. Mitsui OSK Lines |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |