Correlation Between Grand Vision and Zinc Media

Can any of the company-specific risk be diversified away by investing in both Grand Vision and Zinc Media 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 Grand Vision and Zinc Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Vision Media and Zinc Media Group, you can compare the effects of market volatilities on Grand Vision and Zinc Media 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 Grand Vision with a short position of Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and Zinc Media.

Diversification Opportunities for Grand Vision and Zinc Media

0.55

Correlation Coefficient

Grand Vision  Zinc Media

Very weak diversification

The 3 months correlation between Grand and Zinc is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group and Grand Vision 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 Grand Vision Media are associated (or correlated) with Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Grand Vision i.e., Grand Vision and Zinc Media go up and down completely randomly.

Pair Corralation between Grand Vision and Zinc Media

Assuming the 90 days trading horizon Grand Vision Media is expected to under-perform the Zinc Media. In addition to that, Grand Vision is 1.29 times more volatile than Zinc Media Group. It trades about -0.12 of its total potential returns per unit of risk. Zinc Media Group is currently generating about -0.15 per unit of volatility. If you would invest  6,850  in Zinc Media Group on September 4, 2024 and sell it today you would lose (1,700) from holding Zinc Media Group or give up 24.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grand Vision Media  vs.  Zinc Media Group

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Zinc Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zinc Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Grand Vision and Zinc Media

The main advantage of trading using opposite Grand Vision and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.

The idea behind Grand Vision Media and Zinc Media Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.