Correlation Between Zinzino AB and Essity AB
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By analyzing existing cross correlation between Zinzino AB Series and Essity AB, you can compare the effects of market volatilities on Zinzino AB and Essity AB 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 Zinzino AB with a short position of Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinzino AB and Essity AB.
Diversification Opportunities for Zinzino AB and Essity AB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zinzino and Essity is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Zinzino AB Series and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity AB and Zinzino AB 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 Zinzino AB Series are associated (or correlated) with Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Zinzino AB i.e., Zinzino AB and Essity AB go up and down completely randomly.
Pair Corralation between Zinzino AB and Essity AB
Assuming the 90 days trading horizon Zinzino AB Series is expected to under-perform the Essity AB. In addition to that, Zinzino AB is 2.65 times more volatile than Essity AB. It trades about -0.06 of its total potential returns per unit of risk. Essity AB is currently generating about 0.0 per unit of volatility. If you would invest 30,350 in Essity AB on August 26, 2024 and sell it today you would lose (50.00) from holding Essity AB or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinzino AB Series vs. Essity AB
Performance |
| Timeline |
| Zinzino AB Series |
| Essity AB |
Zinzino AB and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinzino AB and Essity AB
The main advantage of trading using opposite Zinzino AB and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinzino AB position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB's long position.| Zinzino AB vs. Mendus AB | Zinzino AB vs. JonDeTech Sensors | Zinzino AB vs. Nexam Chemical Holding | Zinzino AB vs. Lohilo Foods AB |
| Essity AB vs. Essity AB | Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. Industrivarden AB ser | Essity AB vs. Svenska Cellulosa Aktiebolaget |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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