Correlation Between Gladstone Investment and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment 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 Gladstone Investment and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Zijin Mining Group, you can compare the effects of market volatilities on Gladstone Investment 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 Gladstone Investment with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Zijin Mining.
Diversification Opportunities for Gladstone Investment and Zijin Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and Zijin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and Zijin Mining go up and down completely randomly.
Pair Corralation between Gladstone Investment and Zijin Mining
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.53 times more return on investment than Zijin Mining. However, Gladstone Investment is 1.9 times less risky than Zijin Mining. It trades about 0.05 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.01 per unit of risk. If you would invest 1,183 in Gladstone Investment on August 31, 2024 and sell it today you would earn a total of 118.00 from holding Gladstone Investment or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Zijin Mining Group
Performance |
| Timeline |
| Gladstone Investment |
| Zijin Mining Group |
Gladstone Investment and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Zijin Mining
The main advantage of trading using opposite Gladstone Investment and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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.| Gladstone Investment vs. QUEEN S ROAD | Gladstone Investment vs. Air Transport Services | Gladstone Investment vs. Gold Road Resources | Gladstone Investment vs. GOLD ROAD RES |
| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |