Correlation Between Zinc Media and Argo Group
Can any of the company-specific risk be diversified away by investing in both Zinc Media and Argo Group 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 Argo Group 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 Argo Group Limited, you can compare the effects of market volatilities on Zinc Media and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and Argo Group.
Diversification Opportunities for Zinc Media and Argo Group
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zinc and Argo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group and Argo Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group Limited 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group Limited has no effect on the direction of Zinc Media i.e., Zinc Media and Argo Group go up and down completely randomly.
Pair Corralation between Zinc Media and Argo Group
Assuming the 90 days trading horizon Zinc Media Group is expected to generate 0.67 times more return on investment than Argo Group. However, Zinc Media Group is 1.5 times less risky than Argo Group. It trades about -0.02 of its potential returns per unit of risk. Argo Group Limited is currently generating about -0.05 per unit of risk. If you would invest 8,600 in Zinc Media Group on October 13, 2024 and sell it today you would lose (2,950) from holding Zinc Media Group or give up 34.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Zinc Media Group vs. Argo Group Limited
Performance |
| Timeline |
| Zinc Media Group |
| Argo Group Limited |
Zinc Media and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinc Media and Argo Group
The main advantage of trading using opposite Zinc Media and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Zinc Media vs. Compagnie Plastic Omnium | Zinc Media vs. Zurich Insurance Group | Zinc Media vs. JD Sports Fashion | Zinc Media vs. UNIQA Insurance Group |
| Argo Group vs. Cars Inc | Argo Group vs. Intermediate Capital Group | Argo Group vs. Griffin Mining | Argo Group vs. Zinc Media Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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