Correlation Between ZCCM Investments and Maison Antoine

Can any of the company-specific risk be diversified away by investing in both ZCCM Investments and Maison Antoine 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 ZCCM Investments and Maison Antoine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ZCCM Investments Holdings and Maison Antoine Baud, you can compare the effects of market volatilities on ZCCM Investments and Maison Antoine 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 ZCCM Investments with a short position of Maison Antoine. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZCCM Investments and Maison Antoine.

Diversification Opportunities for ZCCM Investments and Maison Antoine

-0.72

Correlation Coefficient

ZCCM Investments  Maison Antoine

Pay attention - limited upside

The 3 months correlation between ZCCM and Maison is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ZCCM Investments Holdings and Maison Antoine Baud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maison Antoine Baud and ZCCM Investments 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 ZCCM Investments Holdings are associated (or correlated) with Maison Antoine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maison Antoine Baud has no effect on the direction of ZCCM Investments i.e., ZCCM Investments and Maison Antoine go up and down completely randomly.

Pair Corralation between ZCCM Investments and Maison Antoine

Assuming the 90 days trading horizon ZCCM Investments Holdings is expected to under-perform the Maison Antoine. In addition to that, ZCCM Investments is 1.39 times more volatile than Maison Antoine Baud. It trades about -0.02 of its total potential returns per unit of risk. Maison Antoine Baud is currently generating about 0.2 per unit of volatility. If you would invest  20,200  in Maison Antoine Baud on December 4, 2024 and sell it today you would earn a total of  7,800  from holding Maison Antoine Baud or generate 38.61% return on investment over 90 days.

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

ZCCM Investments Holdings  vs.  Maison Antoine Baud

ZCCM Investments Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZCCM Investments Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ZCCM Investments is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Maison Antoine Baud

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maison Antoine Baud are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Maison Antoine reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZCCM Investments and Maison Antoine

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

The idea behind ZCCM Investments Holdings and Maison Antoine Baud 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.