Correlation Between CAP LEASE and Zanaga Iron

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

By analyzing existing cross correlation between CAP LEASE AVIATION and Zanaga Iron Ore, you can compare the effects of market volatilities on CAP LEASE and Zanaga Iron 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 CAP LEASE with a short position of Zanaga Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Zanaga Iron.

Diversification Opportunities for CAP LEASE and Zanaga Iron

0.0

Correlation Coefficient

CAP LEASE  Zanaga Iron

Pay attention - limited upside

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

Pair Corralation between CAP LEASE and Zanaga Iron

If you would invest  740.00  in Zanaga Iron Ore on April 20, 2025 and sell it today you would lose (36.00) from holding Zanaga Iron Ore or give up 4.86% of portfolio value over 90 days.

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

CAP LEASE AVIATION  vs.  Zanaga Iron Ore

CAP LEASE AVIATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAP LEASE AVIATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CAP LEASE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Zanaga Iron Ore

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zanaga Iron Ore has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Zanaga Iron 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 CAP LEASE and Zanaga Iron

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

The idea behind CAP LEASE AVIATION and Zanaga Iron Ore 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.