Correlation Between ADRIATIC METALS and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS 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 ADRIATIC METALS and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and Zijin Mining Group, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and Zijin Mining.
Diversification Opportunities for ADRIATIC METALS and Zijin Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ADRIATIC and Zijin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and Zijin Mining go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and Zijin Mining
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 0.88 times more return on investment than Zijin Mining. However, ADRIATIC METALS LS 013355 is 1.14 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 -0.07 per unit of risk. If you would invest 250.00 in ADRIATIC METALS LS 013355 on August 28, 2024 and sell it today you would lose (10.00) from holding ADRIATIC METALS LS 013355 or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. Zijin Mining Group
Performance |
| Timeline |
| ADRIATIC METALS LS |
| Zijin Mining Group |
ADRIATIC METALS and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and Zijin Mining
The main advantage of trading using opposite ADRIATIC METALS and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.| ADRIATIC METALS vs. Superior Plus Corp | ADRIATIC METALS vs. NMI Holdings | ADRIATIC METALS vs. Origin Agritech | ADRIATIC METALS vs. SIVERS SEMICONDUCTORS AB |
| Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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