Correlation Between ZIM Integrated and Globus Maritime

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

By analyzing existing cross correlation between ZIM Integrated Shipping and Globus Maritime, you can compare the effects of market volatilities on ZIM Integrated and Globus Maritime 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 ZIM Integrated with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and Globus Maritime.

Diversification Opportunities for ZIM Integrated and Globus Maritime

-0.19

Correlation Coefficient

ZIM Integrated  Globus Maritime

Good diversification

The 3 months correlation between ZIM and Globus is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and ZIM Integrated 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 ZIM Integrated Shipping are associated (or correlated) with Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and Globus Maritime go up and down completely randomly.

Pair Corralation between ZIM Integrated and Globus Maritime

Considering the 90-day investment horizon ZIM Integrated Shipping is expected to under-perform the Globus Maritime. In addition to that, ZIM Integrated is 1.15 times more volatile than Globus Maritime. It trades about -0.05 of its total potential returns per unit of risk. Globus Maritime is currently generating about 0.03 per unit of volatility. If you would invest  116.00  in Globus Maritime on December 26, 2024 and sell it today you would earn a total of  3.00  from holding Globus Maritime or generate 2.59% return on investment over 90 days.

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

ZIM Integrated Shipping  vs.  Globus Maritime

ZIM Integrated Shipping

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZIM Integrated Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Globus Maritime

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Maritime are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, Globus Maritime is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ZIM Integrated and Globus Maritime

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

The idea behind ZIM Integrated Shipping and Globus Maritime 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.