Correlation Between State Bank and ZINZINO AB

Can any of the company-specific risk be diversified away by investing in both State Bank and ZINZINO AB 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 State Bank and ZINZINO AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between State Bank of and ZINZINO AB B, you can compare the effects of market volatilities on State Bank and ZINZINO 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 State Bank with a short position of ZINZINO AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and ZINZINO AB.

Diversification Opportunities for State Bank and ZINZINO AB

-0.43

Correlation Coefficient

State Bank  ZINZINO AB

Very good diversification

The 3 months correlation between State and ZINZINO is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and ZINZINO AB B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINZINO AB B and State Bank 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 State Bank of are associated (or correlated) with ZINZINO AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINZINO AB B has no effect on the direction of State Bank i.e., State Bank and ZINZINO AB go up and down completely randomly.

Pair Corralation between State Bank and ZINZINO AB

Assuming the 90 days horizon State Bank of is expected to under-perform the ZINZINO AB. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 2.27 times less risky than ZINZINO AB. The stock trades about -0.42 of its potential returns per unit of risk. The ZINZINO AB B is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  745.00  in ZINZINO AB B on October 9, 2024 and sell it today you would earn a total of  57.00  from holding ZINZINO AB B or generate 7.65% return on investment over 90 days.

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

State Bank of  vs.  ZINZINO AB B

State Bank

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in State Bank of are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, State Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ZINZINO AB B

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZINZINO AB B has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with State Bank and ZINZINO AB

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

The idea behind State Bank of and ZINZINO AB B 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..