Correlation Between Zinc Media and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Zinc Media and Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings plc, you can compare the effects of market volatilities on Zinc Media and Oncimmune Holdings 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 Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and Oncimmune Holdings.
Diversification Opportunities for Zinc Media and Oncimmune Holdings
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zinc and Oncimmune is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc 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 Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Zinc Media i.e., Zinc Media and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Zinc Media and Oncimmune Holdings
Assuming the 90 days trading horizon Zinc Media Group is expected to generate 0.44 times more return on investment than Oncimmune Holdings. However, Zinc Media Group is 2.26 times less risky than Oncimmune Holdings. It trades about -0.04 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.02 per unit of risk. If you would invest 8,750 in Zinc Media Group on September 12, 2024 and sell it today you would lose (3,850) from holding Zinc Media Group or give up 44.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Zinc Media Group vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Zinc Media Group |
| Oncimmune Holdings plc |
Zinc Media and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinc Media and Oncimmune Holdings
The main advantage of trading using opposite Zinc Media and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Zinc Media vs. Catalyst Media Group | Zinc Media vs. CATLIN GROUP | Zinc Media vs. Tamburi Investment Partners | Zinc Media vs. Magnora ASA |
| Oncimmune Holdings vs. Live Nation Entertainment | Oncimmune Holdings vs. AcadeMedia AB | Oncimmune Holdings vs. GlobalData PLC | Oncimmune Holdings vs. Intermediate Capital 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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