Correlation Between ZoomerMedia and Sack Lunch

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

By analyzing existing cross correlation between ZoomerMedia Limited and Sack Lunch Productions, you can compare the effects of market volatilities on ZoomerMedia and Sack Lunch 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 ZoomerMedia with a short position of Sack Lunch. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZoomerMedia and Sack Lunch.

Diversification Opportunities for ZoomerMedia and Sack Lunch

0.0

Correlation Coefficient

ZoomerMedia  Sack Lunch

Pay attention - limited upside

The 3 months correlation between ZoomerMedia and Sack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZoomerMedia Limited and Sack Lunch Productions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sack Lunch Productions and ZoomerMedia 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 ZoomerMedia Limited are associated (or correlated) with Sack Lunch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sack Lunch Productions has no effect on the direction of ZoomerMedia i.e., ZoomerMedia and Sack Lunch go up and down completely randomly.

Pair Corralation between ZoomerMedia and Sack Lunch

If you would invest  1.10  in Sack Lunch Productions on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Sack Lunch Productions or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ZoomerMedia Limited  vs.  Sack Lunch Productions

ZoomerMedia Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZoomerMedia Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ZoomerMedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Sack Lunch Productions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sack Lunch Productions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Sack Lunch disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZoomerMedia and Sack Lunch

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

The idea behind ZoomerMedia Limited and Sack Lunch Productions 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.