Correlation Between Zaptec AS and Zenicor Medical

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

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

Diversification Opportunities for Zaptec AS and Zenicor Medical

-0.11

Correlation Coefficient

Zaptec AS  Zenicor Medical

Good diversification

The 3 months correlation between Zaptec and Zenicor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zaptec AS and Zenicor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenicor Medical Systems and Zaptec AS 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 Zaptec AS are associated (or correlated) with Zenicor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenicor Medical Systems has no effect on the direction of Zaptec AS i.e., Zaptec AS and Zenicor Medical go up and down completely randomly.

Pair Corralation between Zaptec AS and Zenicor Medical

Assuming the 90 days trading horizon Zaptec AS is expected to under-perform the Zenicor Medical. But the stock apears to be less risky and, when comparing its historical volatility, Zaptec AS is 1.01 times less risky than Zenicor Medical. The stock trades about -0.07 of its potential returns per unit of risk. The Zenicor Medical Systems is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  179.00  in Zenicor Medical Systems on September 5, 2024 and sell it today you would lose (2.00) from holding Zenicor Medical Systems or give up 1.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Zaptec AS  vs.  Zenicor Medical Systems

Zaptec AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zaptec AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Zenicor Medical Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zenicor Medical Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Zenicor Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Zaptec AS and Zenicor Medical

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

The idea behind Zaptec AS and Zenicor Medical Systems 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.