Correlation Between ZINC MEDIA and OptiNose

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

By analyzing existing cross correlation between ZINC MEDIA GR and OptiNose, you can compare the effects of market volatilities on ZINC MEDIA and OptiNose 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 ZINC MEDIA with a short position of OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINC MEDIA and OptiNose.

Diversification Opportunities for ZINC MEDIA and OptiNose

0.38

Correlation Coefficient

ZINC MEDIA  OptiNose

Weak diversification

The 3 months correlation between ZINC and OptiNose is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ZINC MEDIA GR and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose and ZINC MEDIA 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 ZINC MEDIA GR are associated (or correlated) with OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of ZINC MEDIA i.e., ZINC MEDIA and OptiNose go up and down completely randomly.

Pair Corralation between ZINC MEDIA and OptiNose

Assuming the 90 days trading horizon ZINC MEDIA GR is expected to generate 0.71 times more return on investment than OptiNose. However, ZINC MEDIA GR is 1.41 times less risky than OptiNose. It trades about 0.2 of its potential returns per unit of risk. OptiNose is currently generating about -0.1 per unit of risk. If you would invest  56.00  in ZINC MEDIA GR on December 20, 2024 and sell it today you would earn a total of  15.00  from holding ZINC MEDIA GR or generate 26.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	79.66%
Values	Daily Returns

ZINC MEDIA GR  vs.  OptiNose

ZINC MEDIA GR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ZINC MEDIA GR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ZINC MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.

OptiNose

Risk-Adjusted Performance

Very Weak

Over the last 90 days OptiNose has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ZINC MEDIA and OptiNose

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

The idea behind ZINC MEDIA GR and OptiNose 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.