Correlation Between ZSPY and IM Global
Can any of the company-specific risk be diversified away by investing in both ZSPY and IM Global 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 ZSPY and IM Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZSPY and IM Global Partner, you can compare the effects of market volatilities on ZSPY and IM Global 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 ZSPY with a short position of IM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZSPY and IM Global.
Diversification Opportunities for ZSPY and IM Global
Good diversification
The 3 months correlation between ZSPY and DBEH is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ZSPY and IM Global Partner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM Global Partner and ZSPY 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 ZSPY are associated (or correlated) with IM Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM Global Partner has no effect on the direction of ZSPY i.e., ZSPY and IM Global go up and down completely randomly.
Pair Corralation between ZSPY and IM Global
Given the investment horizon of 90 days ZSPY is expected to generate 3.48 times more return on investment than IM Global. However, ZSPY is 3.48 times more volatile than IM Global Partner. It trades about 0.1 of its potential returns per unit of risk. IM Global Partner is currently generating about 0.06 per unit of risk. If you would invest 2,506 in ZSPY on September 4, 2024 and sell it today you would earn a total of 476.00 from holding ZSPY or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.86% |
| Values | Daily Returns |
ZSPY vs. IM Global Partner
Performance |
| Timeline |
| ZSPY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IM Global Partner |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
ZSPY and IM Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZSPY and IM Global
The main advantage of trading using opposite ZSPY and IM Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZSPY position performs unexpectedly, IM Global 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 IM Global will offset losses from the drop in IM Global's long position.| ZSPY vs. Vanguard Total Stock | ZSPY vs. SPDR SP 500 | ZSPY vs. iShares Core SP | ZSPY vs. Vanguard Total Bond |
| IM Global vs. iMGP DBi Managed | IM Global vs. Simplify Exchange Traded | IM Global vs. KFA Mount Lucas | IM Global vs. First Trust Managed |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |