Correlation Between COFCO Joycome and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Zijin Mining 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 COFCO Joycome and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Zijin Mining Group, you can compare the effects of market volatilities on COFCO Joycome and Zijin Mining 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 COFCO Joycome with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Zijin Mining.
Diversification Opportunities for COFCO Joycome and Zijin Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COFCO and Zijin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Zijin Mining go up and down completely randomly.
Pair Corralation between COFCO Joycome and Zijin Mining
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Zijin Mining. In addition to that, COFCO Joycome is 1.08 times more volatile than Zijin Mining Group. It trades about -0.01 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of volatility. If you would invest 95.00 in Zijin Mining Group on October 27, 2024 and sell it today you would earn a total of 83.00 from holding Zijin Mining Group or generate 87.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Zijin Mining Group
Performance |
| Timeline |
| COFCO Joycome Foods |
| Zijin Mining Group |
COFCO Joycome and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Zijin Mining
The main advantage of trading using opposite COFCO Joycome and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
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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