Correlation Between ZIM Integrated and United Maritime
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and United 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 United 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 United Maritime, you can compare the effects of market volatilities on ZIM Integrated and United 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 United Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and United Maritime.
Diversification Opportunities for ZIM Integrated and United Maritime
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZIM and United is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and United Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United 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 United Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Maritime has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and United Maritime go up and down completely randomly.
Pair Corralation between ZIM Integrated and United Maritime
Considering the 90-day investment horizon ZIM Integrated Shipping is expected to generate 1.85 times more return on investment than United Maritime. However, ZIM Integrated is 1.85 times more volatile than United Maritime. It trades about 0.03 of its potential returns per unit of risk. United Maritime is currently generating about -0.02 per unit of risk. If you would invest 1,955 in ZIM Integrated Shipping on December 3, 2024 and sell it today you would earn a total of 67.00 from holding ZIM Integrated Shipping or generate 3.43% 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. United Maritime
Performance |
Timeline |
ZIM Integrated Shipping |
United Maritime |
ZIM Integrated and United Maritime Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZIM Integrated and United Maritime
The main advantage of trading using opposite ZIM Integrated and United Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, United 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 United Maritime will offset losses from the drop in United Maritime's long position.ZIM Integrated vs. Golden Ocean Group | ZIM Integrated vs. Genco Shipping Trading | ZIM Integrated vs. Global Ship Lease | ZIM Integrated vs. Diana Shipping |
United Maritime vs. TOP Ships | United Maritime vs. Globus Maritime | United Maritime vs. Castor Maritime | United Maritime vs. Safe Bulkers |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |