Correlation Between Fortinet and MicroAlgo
Can any of the company-specific risk be diversified away by investing in both Fortinet and MicroAlgo 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 Fortinet and MicroAlgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and MicroAlgo, you can compare the effects of market volatilities on Fortinet and MicroAlgo 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 Fortinet with a short position of MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and MicroAlgo.
Diversification Opportunities for Fortinet and MicroAlgo
Excellent diversification
The 3 months correlation between Fortinet and MicroAlgo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo and Fortinet 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 Fortinet are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Fortinet i.e., Fortinet and MicroAlgo go up and down completely randomly.
Pair Corralation between Fortinet and MicroAlgo
Given the investment horizon of 90 days Fortinet is expected to generate 0.17 times more return on investment than MicroAlgo. However, Fortinet is 5.77 times less risky than MicroAlgo. It trades about 0.09 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.31 per unit of risk. If you would invest 9,437 in Fortinet on April 22, 2025 and sell it today you would earn a total of 1,105 from holding Fortinet or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. MicroAlgo
Performance |
| Timeline |
| Fortinet |
| MicroAlgo |
Fortinet and MicroAlgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and MicroAlgo
The main advantage of trading using opposite Fortinet and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, MicroAlgo 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 MicroAlgo will offset losses from the drop in MicroAlgo's long position.| Fortinet vs. Zscaler | Fortinet vs. Palo Alto Networks | Fortinet vs. Crowdstrike Holdings | Fortinet vs. Okta Inc |
| MicroAlgo vs. Evertec | MicroAlgo vs. FOXO Technologies | MicroAlgo vs. Golden Sun Education | MicroAlgo vs. Heart Test Laboratories |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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