Correlation Between Zinc Media and Comerica
Can any of the company-specific risk be diversified away by investing in both Zinc Media and Comerica 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 Zinc Media and Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinc Media Group and Comerica, you can compare the effects of market volatilities on Zinc Media and Comerica 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 Zinc Media with a short position of Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and Comerica.
Diversification Opportunities for Zinc Media and Comerica
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zinc and Comerica is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica and Zinc Media 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 Zinc Media Group are associated (or correlated) with Comerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica has no effect on the direction of Zinc Media i.e., Zinc Media and Comerica go up and down completely randomly.
Pair Corralation between Zinc Media and Comerica
Assuming the 90 days trading horizon Zinc Media Group is expected to generate 0.86 times more return on investment than Comerica. However, Zinc Media Group is 1.17 times less risky than Comerica. It trades about 0.35 of its potential returns per unit of risk. Comerica is currently generating about 0.17 per unit of risk. If you would invest 5,150 in Zinc Media Group on November 3, 2024 and sell it today you would earn a total of 1,050 from holding Zinc Media Group or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.61% |
| Values | Daily Returns |
Zinc Media Group vs. Comerica
Performance |
| Timeline |
| Zinc Media Group |
| Comerica |
Zinc Media and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinc Media and Comerica
The main advantage of trading using opposite Zinc Media and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media position performs unexpectedly, Comerica 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 Comerica will offset losses from the drop in Comerica's long position.| Zinc Media vs. Wheaton Precious Metals | Zinc Media vs. Atalaya Mining | Zinc Media vs. JB Hunt Transport | Zinc Media vs. EVS Broadcast Equipment |
| Comerica vs. Wheaton Precious Metals | Comerica vs. Rosslyn Data Technologies | Comerica vs. European Metals Holdings | Comerica vs. Fidelity National Information |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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