Correlation Between VARIOUS EATERIES and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES 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 VARIOUS EATERIES and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and Zijin Mining Group, you can compare the effects of market volatilities on VARIOUS EATERIES 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 VARIOUS EATERIES with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and Zijin Mining.
Diversification Opportunities for VARIOUS EATERIES and Zijin Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VARIOUS and Zijin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS 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 VARIOUS EATERIES i.e., VARIOUS EATERIES and Zijin Mining go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and Zijin Mining
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, VARIOUS EATERIES LS is 2.4 times less risky than Zijin Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Zijin Mining Group on September 1, 2024 and sell it today you would lose (5.00) from holding Zijin Mining Group or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. Zijin Mining Group
Performance |
| Timeline |
| VARIOUS EATERIES |
| Zijin Mining Group |
VARIOUS EATERIES and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and Zijin Mining
The main advantage of trading using opposite VARIOUS EATERIES and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES 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.| VARIOUS EATERIES vs. USWE SPORTS AB | VARIOUS EATERIES vs. Fukuyama Transporting Co | VARIOUS EATERIES vs. Transport International Holdings | VARIOUS EATERIES vs. NetSol Technologies |
| Zijin Mining vs. Astral Foods Limited | Zijin Mining vs. GALENA MINING LTD | Zijin Mining vs. CN MODERN DAIRY | Zijin Mining vs. TYSON FOODS A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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