Correlation Between VEGANO FOODS and Fortescue Metals

Can any of the company-specific risk be diversified away by investing in both VEGANO FOODS 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 VEGANO FOODS and Fortescue Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VEGANO FOODS INC and Fortescue Metals Group, you can compare the effects of market volatilities on VEGANO FOODS 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 VEGANO FOODS with a short position of Fortescue Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEGANO FOODS and Fortescue Metals.

Diversification Opportunities for VEGANO FOODS and Fortescue Metals

0.0

Correlation Coefficient

VEGANO FOODS  Fortescue Metals

Pay attention - limited upside

The 3 months correlation between VEGANO and Fortescue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VEGANO FOODS INC and Fortescue Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortescue Metals and VEGANO FOODS 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 VEGANO FOODS INC 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 VEGANO FOODS i.e., VEGANO FOODS and Fortescue Metals go up and down completely randomly.

Pair Corralation between VEGANO FOODS and Fortescue Metals

If you would invest  862.00  in Fortescue Metals Group on April 23, 2025 and sell it today you would earn a total of  128.00  from holding Fortescue Metals Group or generate 14.85% return on investment over 90 days.

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

VEGANO FOODS INC  vs.  Fortescue Metals Group

VEGANO FOODS INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days VEGANO FOODS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, VEGANO FOODS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fortescue Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fortescue Metals Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fortescue Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VEGANO FOODS and Fortescue Metals

The main advantage of trading using opposite VEGANO FOODS and Fortescue Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEGANO FOODS 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.

The idea behind VEGANO FOODS INC and Fortescue Metals Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.