Correlation Between Zanaga Iron and Energean Oil
Can any of the company-specific risk be diversified away by investing in both Zanaga Iron and Energean Oil 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 Zanaga Iron and Energean Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zanaga Iron Ore and Energean Oil Gas, you can compare the effects of market volatilities on Zanaga Iron and Energean Oil 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 Zanaga Iron with a short position of Energean Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zanaga Iron and Energean Oil.
Diversification Opportunities for Zanaga Iron and Energean Oil
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zanaga and Energean is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zanaga Iron Ore and Energean Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energean Oil Gas and Zanaga Iron 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 Zanaga Iron Ore are associated (or correlated) with Energean Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energean Oil Gas has no effect on the direction of Zanaga Iron i.e., Zanaga Iron and Energean Oil go up and down completely randomly.
Pair Corralation between Zanaga Iron and Energean Oil
Assuming the 90 days trading horizon Zanaga Iron Ore is expected to generate 2.84 times more return on investment than Energean Oil. However, Zanaga Iron is 2.84 times more volatile than Energean Oil Gas. It trades about 0.04 of its potential returns per unit of risk. Energean Oil Gas is currently generating about 0.01 per unit of risk. If you would invest 560.00 in Zanaga Iron Ore on November 2, 2024 and sell it today you would earn a total of 244.00 from holding Zanaga Iron Ore or generate 43.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zanaga Iron Ore vs. Energean Oil Gas
Performance |
| Timeline |
| Zanaga Iron Ore |
| Energean Oil Gas |
Zanaga Iron and Energean Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zanaga Iron and Energean Oil
The main advantage of trading using opposite Zanaga Iron and Energean Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zanaga Iron position performs unexpectedly, Energean Oil 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 Energean Oil will offset losses from the drop in Energean Oil's long position.| Zanaga Iron vs. Charter Communications Cl | Zanaga Iron vs. Xeros Technology Group | Zanaga Iron vs. Aeorema Communications Plc | Zanaga Iron vs. Spirent Communications plc |
| Energean Oil vs. Porvair plc | Energean Oil vs. Adriatic Metals | Energean Oil vs. Pentair PLC | Energean Oil vs. bet at home AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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