Correlation Between Freeport and Zumiez
Specify exactly 2 symbols:
By analyzing existing cross correlation between Freeport McMoRan 545 percent and Zumiez Inc, you can compare the effects of market volatilities on Freeport and Zumiez 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 Freeport with a short position of Zumiez. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeport and Zumiez.
Diversification Opportunities for Freeport and Zumiez
Very weak diversification
The 3 months correlation between Freeport and Zumiez is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Freeport McMoRan 545 percent and Zumiez Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zumiez Inc and Freeport 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 Freeport McMoRan 545 percent are associated (or correlated) with Zumiez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zumiez Inc has no effect on the direction of Freeport i.e., Freeport and Zumiez go up and down completely randomly.
Pair Corralation between Freeport and Zumiez
Assuming the 90 days trading horizon Freeport McMoRan 545 percent is expected to generate 0.21 times more return on investment than Zumiez. However, Freeport McMoRan 545 percent is 4.87 times less risky than Zumiez. It trades about -0.12 of its potential returns per unit of risk. Zumiez Inc is currently generating about -0.04 per unit of risk. If you would invest 9,968 in Freeport McMoRan 545 percent on September 25, 2024 and sell it today you would lose (532.00) from holding Freeport McMoRan 545 percent or give up 5.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Freeport McMoRan 545 percent vs. Zumiez Inc
Performance |
Timeline |
Freeport McMoRan 545 |
Zumiez Inc |
Freeport and Zumiez Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freeport and Zumiez
The main advantage of trading using opposite Freeport and Zumiez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeport position performs unexpectedly, Zumiez 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 Zumiez will offset losses from the drop in Zumiez's long position.Freeport vs. American Airlines Group | Freeport vs. Comstock Holding Companies | Freeport vs. Sun Country Airlines | Freeport vs. SkyWest |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |