Correlation Between ZIM Integrated and PT Wintermar

Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and PT Wintermar 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 PT Wintermar 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 PT Wintermar Offshore, you can compare the effects of market volatilities on ZIM Integrated and PT Wintermar 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 PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and PT Wintermar.

Diversification Opportunities for ZIM Integrated and PT Wintermar

-0.26

Correlation Coefficient

ZIM Integrated  PT Wintermar

Very good diversification

The 3 months correlation between ZIM and W6O is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore 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 PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and PT Wintermar go up and down completely randomly.

Pair Corralation between ZIM Integrated and PT Wintermar

Assuming the 90 days horizon ZIM Integrated Shipping is expected to generate 1.11 times more return on investment than PT Wintermar. However, ZIM Integrated is 1.11 times more volatile than PT Wintermar Offshore. It trades about 0.05 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about 0.02 per unit of risk. If you would invest  1,834  in ZIM Integrated Shipping on September 25, 2024 and sell it today you would earn a total of  116.00  from holding ZIM Integrated Shipping or generate 6.32% 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.  PT Wintermar Offshore

ZIM Integrated Shipping

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZIM Integrated Shipping are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ZIM Integrated reported solid returns over the last few months and may actually be approaching a breakup point.

PT Wintermar Offshore

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Wintermar Offshore are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PT Wintermar is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ZIM Integrated and PT Wintermar

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

The idea behind ZIM Integrated Shipping and PT Wintermar Offshore 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..