Correlation Between ZINZINO AB and LABOCANNA

Can any of the company-specific risk be diversified away by investing in both ZINZINO AB and LABOCANNA 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 LABOCANNA 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 LABOCANNA SA ZY 10, you can compare the effects of market volatilities on ZINZINO AB and LABOCANNA 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 LABOCANNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINZINO AB and LABOCANNA.

Diversification Opportunities for ZINZINO AB and LABOCANNA

0.18

Correlation Coefficient

ZINZINO AB  LABOCANNA

Average diversification

The 3 months correlation between ZINZINO and LABOCANNA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ZINZINO AB B and LABOCANNA SA ZY 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LABOCANNA SA ZY 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 LABOCANNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LABOCANNA SA ZY has no effect on the direction of ZINZINO AB i.e., ZINZINO AB and LABOCANNA go up and down completely randomly.

Pair Corralation between ZINZINO AB and LABOCANNA

Assuming the 90 days horizon ZINZINO AB B is expected to generate 1.05 times more return on investment than LABOCANNA. However, ZINZINO AB is 1.05 times more volatile than LABOCANNA SA ZY 10. It trades about 0.22 of its potential returns per unit of risk. LABOCANNA SA ZY 10 is currently generating about 0.03 per unit of risk. If you would invest  902.00  in ZINZINO AB B on January 26, 2025 and sell it today you would earn a total of  582.00  from holding ZINZINO AB B or generate 64.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ZINZINO AB B  vs.  LABOCANNA SA ZY 10

ZINZINO AB B

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ZINZINO AB B are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ZINZINO AB reported solid returns over the last few months and may actually be approaching a breakup point.

LABOCANNA SA ZY

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LABOCANNA SA ZY 10 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, LABOCANNA may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with ZINZINO AB and LABOCANNA

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

The idea behind ZINZINO AB B and LABOCANNA SA ZY 10 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.