Correlation Between Zenicor Medical and Humble Group

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

By analyzing existing cross correlation between Zenicor Medical Systems and Humble Group AB, you can compare the effects of market volatilities on Zenicor Medical and Humble Group 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 Zenicor Medical with a short position of Humble Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zenicor Medical and Humble Group.

Diversification Opportunities for Zenicor Medical and Humble Group

-0.59

Correlation Coefficient

Zenicor Medical  Humble Group

Excellent diversification

The 3 months correlation between Zenicor and Humble is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zenicor Medical Systems and Humble Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humble Group AB and Zenicor Medical 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 Zenicor Medical Systems are associated (or correlated) with Humble Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humble Group AB has no effect on the direction of Zenicor Medical i.e., Zenicor Medical and Humble Group go up and down completely randomly.

Pair Corralation between Zenicor Medical and Humble Group

Assuming the 90 days trading horizon Zenicor Medical Systems is expected to generate 1.58 times more return on investment than Humble Group. However, Zenicor Medical is 1.58 times more volatile than Humble Group AB. It trades about 0.05 of its potential returns per unit of risk. Humble Group AB is currently generating about -0.19 per unit of risk. If you would invest  179.00  in Zenicor Medical Systems on December 24, 2024 and sell it today you would earn a total of  11.00  from holding Zenicor Medical Systems or generate 6.15% return on investment over 90 days.

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

Zenicor Medical Systems  vs.  Humble Group AB

Zenicor Medical Systems

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zenicor Medical Systems are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Zenicor Medical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Humble Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humble Group AB 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 primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Zenicor Medical and Humble Group

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

The idea behind Zenicor Medical Systems and Humble Group AB 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.