Correlation Between ZINZINO AB and Fortescue Metals
Can any of the company-specific risk be diversified away by investing in both ZINZINO AB and Fortescue Metals 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 ZINZINO AB and Fortescue Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINZINO AB B and Fortescue Metals Group, you can compare the effects of market volatilities on ZINZINO AB and Fortescue Metals 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 ZINZINO AB with a short position of Fortescue Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINZINO AB and Fortescue Metals.
Diversification Opportunities for ZINZINO AB and Fortescue Metals
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZINZINO and Fortescue is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ZINZINO AB B and Fortescue Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortescue Metals and ZINZINO AB 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 ZINZINO AB B are associated (or correlated) with Fortescue Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortescue Metals has no effect on the direction of ZINZINO AB i.e., ZINZINO AB and Fortescue Metals go up and down completely randomly.
Pair Corralation between ZINZINO AB and Fortescue Metals
Assuming the 90 days horizon ZINZINO AB B is expected to under-perform the Fortescue Metals. In addition to that, ZINZINO AB is 2.83 times more volatile than Fortescue Metals Group. It trades about -0.21 of its total potential returns per unit of risk. Fortescue Metals Group is currently generating about 0.17 per unit of volatility. If you would invest 911.00 in Fortescue Metals Group on July 18, 2025 and sell it today you would earn a total of 166.00 from holding Fortescue Metals Group or generate 18.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINZINO AB B vs. Fortescue Metals Group
Performance |
| Timeline |
| ZINZINO AB B |
| Fortescue Metals |
ZINZINO AB and Fortescue Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINZINO AB and Fortescue Metals
The main advantage of trading using opposite ZINZINO AB and Fortescue Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINZINO AB position performs unexpectedly, Fortescue Metals 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 Fortescue Metals will offset losses from the drop in Fortescue Metals' long position.| ZINZINO AB vs. Salesforce | ZINZINO AB vs. Tencent Music Entertainment | ZINZINO AB vs. SIDETRADE EO 1 | ZINZINO AB vs. National Retail Properties |
| Fortescue Metals vs. ARISTOCRAT LEISURE | Fortescue Metals vs. DeVry Education Group | Fortescue Metals vs. ePlay Digital | Fortescue Metals vs. Playmates Toys Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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