Correlation Between SF Sustainable and ZKB PERPETUAL

Can any of the company-specific risk be diversified away by investing in both SF Sustainable and ZKB PERPETUAL 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 SF Sustainable and ZKB PERPETUAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SF Sustainable Property and ZKB PERPETUAL VAR, you can compare the effects of market volatilities on SF Sustainable and ZKB PERPETUAL 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 SF Sustainable with a short position of ZKB PERPETUAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SF Sustainable and ZKB PERPETUAL.

Diversification Opportunities for SF Sustainable and ZKB PERPETUAL

0.0

Correlation Coefficient

SF Sustainable  ZKB PERPETUAL

Pay attention - limited upside

The 3 months correlation between SFPF and ZKB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SF Sustainable Property and ZKB PERPETUAL VAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB PERPETUAL VAR and SF Sustainable 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 SF Sustainable Property are associated (or correlated) with ZKB PERPETUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB PERPETUAL VAR has no effect on the direction of SF Sustainable i.e., SF Sustainable and ZKB PERPETUAL go up and down completely randomly.

Pair Corralation between SF Sustainable and ZKB PERPETUAL

If you would invest  11,107  in SF Sustainable Property on September 26, 2024 and sell it today you would earn a total of  1,843  from holding SF Sustainable Property or generate 16.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SF Sustainable Property  vs.  ZKB PERPETUAL VAR

SF Sustainable Property

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SF Sustainable Property are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable basic indicators, SF Sustainable is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ZKB PERPETUAL VAR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZKB PERPETUAL VAR has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, ZKB PERPETUAL is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SF Sustainable and ZKB PERPETUAL

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

The idea behind SF Sustainable Property and ZKB PERPETUAL VAR 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 Transaction History module to view history of all your transactions and understand their impact on performance.