Correlation Between ZINZINO AB and General Mills
Can any of the company-specific risk be diversified away by investing in both ZINZINO AB and General Mills 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 General Mills 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 General Mills, you can compare the effects of market volatilities on ZINZINO AB and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINZINO AB and General Mills.
Diversification Opportunities for ZINZINO AB and General Mills
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZINZINO and General is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ZINZINO AB B and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of ZINZINO AB i.e., ZINZINO AB and General Mills go up and down completely randomly.
Pair Corralation between ZINZINO AB and General Mills
Assuming the 90 days horizon ZINZINO AB B is expected to generate 3.47 times more return on investment than General Mills. However, ZINZINO AB is 3.47 times more volatile than General Mills. It trades about 0.09 of its potential returns per unit of risk. General Mills is currently generating about 0.03 per unit of risk. If you would invest 159.00 in ZINZINO AB B on September 1, 2024 and sell it today you would earn a total of 592.00 from holding ZINZINO AB B or generate 372.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINZINO AB B vs. General Mills
Performance |
| Timeline |
| ZINZINO AB B |
| General Mills |
ZINZINO AB and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINZINO AB and General Mills
The main advantage of trading using opposite ZINZINO AB and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINZINO AB position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| ZINZINO AB vs. HEMISPHERE EGY | ZINZINO AB vs. Regions Financial | ZINZINO AB vs. Consolidated Communications Holdings | ZINZINO AB vs. Webster Financial |
| General Mills vs. INTER CARS SA | General Mills vs. Geely Automobile Holdings | General Mills vs. GEELY AUTOMOBILE | General Mills vs. MCEWEN MINING INC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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