Correlation Between Bank of New York and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Bank of New York 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 Bank of New York and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Zijin Mining Group, you can compare the effects of market volatilities on Bank of New York 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 Bank of New York with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Zijin Mining.
Diversification Opportunities for Bank of New York and Zijin Mining
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Zijin is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New 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 Bank of New York 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 Bank of New 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 Bank of New York i.e., Bank of New York and Zijin Mining go up and down completely randomly.
Pair Corralation between Bank of New York and Zijin Mining
Allowing for the 90-day total investment horizon Bank of New is expected to generate 0.27 times more return on investment than Zijin Mining. However, Bank of New is 3.72 times less risky than Zijin Mining. It trades about 0.24 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 5,807 in Bank of New on September 2, 2024 and sell it today you would earn a total of 2,380 from holding Bank of New or generate 40.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Bank of New vs. Zijin Mining Group
Performance |
| Timeline |
| Bank of New York |
| Zijin Mining Group |
Bank of New York and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Zijin Mining
The main advantage of trading using opposite Bank of New York and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York 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.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| Zijin Mining vs. Torex Gold Resources | Zijin Mining vs. Wesdome Gold Mines | Zijin Mining vs. Northern Star Resources | Zijin Mining vs. Regis 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |