Correlation Between Zinc Media and Marks
Can any of the company-specific risk be diversified away by investing in both Zinc Media and Marks 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 Marks 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 Marks and Spencer, you can compare the effects of market volatilities on Zinc Media and Marks 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 Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and Marks.
Diversification Opportunities for Zinc Media and Marks
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zinc and Marks is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer 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 Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of Zinc Media i.e., Zinc Media and Marks go up and down completely randomly.
Pair Corralation between Zinc Media and Marks
Assuming the 90 days trading horizon Zinc Media Group is expected to under-perform the Marks. In addition to that, Zinc Media is 1.33 times more volatile than Marks and Spencer. It trades about -0.02 of its total potential returns per unit of risk. Marks and Spencer is currently generating about 0.1 per unit of volatility. If you would invest 14,690 in Marks and Spencer on October 14, 2024 and sell it today you would earn a total of 18,810 from holding Marks and Spencer or generate 128.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Zinc Media Group vs. Marks and Spencer
Performance |
| Timeline |
| Zinc Media Group |
| Marks and Spencer |
Zinc Media and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinc Media and Marks
The main advantage of trading using opposite Zinc Media and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' 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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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