Correlation Between AerCap Holdings and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings 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 AerCap Holdings and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerCap Holdings NV and Zijin Mining Group, you can compare the effects of market volatilities on AerCap Holdings 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 AerCap Holdings with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Zijin Mining.
Diversification Opportunities for AerCap Holdings and Zijin Mining
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerCap and Zijin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV 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 AerCap Holdings 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 AerCap Holdings NV 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 AerCap Holdings i.e., AerCap Holdings and Zijin Mining go up and down completely randomly.
Pair Corralation between AerCap Holdings and Zijin Mining
Considering the 90-day investment horizon AerCap Holdings is expected to generate 4.39 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, AerCap Holdings NV is 6.07 times less risky than Zijin Mining. It trades about 0.07 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Zijin Mining Group on August 27, 2024 and sell it today you would earn a total of 54.00 from holding Zijin Mining Group or generate 38.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.73% |
| Values | Daily Returns |
AerCap Holdings NV vs. Zijin Mining Group
Performance |
| Timeline |
| AerCap Holdings NV |
| Zijin Mining Group |
AerCap Holdings and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Zijin Mining
The main advantage of trading using opposite AerCap Holdings and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings 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.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Liberty Gold Corp | Zijin Mining vs. Orezone Gold Corp | Zijin Mining vs. Radisson Mining Resources |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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