Correlation Between Grupo Aeroportuario and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario 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 Grupo Aeroportuario and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Aeroportuario del and Zijin Mining Group, you can compare the effects of market volatilities on Grupo Aeroportuario 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 Grupo Aeroportuario with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Zijin Mining.
Diversification Opportunities for Grupo Aeroportuario and Zijin Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and Zijin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del 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 Grupo Aeroportuario 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 Grupo Aeroportuario del 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 Grupo Aeroportuario i.e., Grupo Aeroportuario and Zijin Mining go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Zijin Mining
Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 0.36 times more return on investment than Zijin Mining. However, Grupo Aeroportuario del is 2.77 times less risky than Zijin Mining. It trades about -0.12 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.15 per unit of risk. If you would invest 26,401 in Grupo Aeroportuario del on September 3, 2024 and sell it today you would lose (853.00) from holding Grupo Aeroportuario del or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Zijin Mining Group
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Zijin Mining Group |
Grupo Aeroportuario and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Zijin Mining
The main advantage of trading using opposite Grupo Aeroportuario and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario 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.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |