Correlation Between COPT Defense and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both COPT Defense 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 COPT Defense and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPT Defense Properties and Zijin Mining Group, you can compare the effects of market volatilities on COPT Defense 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 COPT Defense with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPT Defense and Zijin Mining.
Diversification Opportunities for COPT Defense and Zijin Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COPT and Zijin is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding COPT Defense Properties 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 COPT Defense 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 COPT Defense Properties 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 COPT Defense i.e., COPT Defense and Zijin Mining go up and down completely randomly.
Pair Corralation between COPT Defense and Zijin Mining
Considering the 90-day investment horizon COPT Defense Properties is expected to generate 0.32 times more return on investment than Zijin Mining. However, COPT Defense Properties is 3.14 times less risky than Zijin Mining. It trades about 0.18 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.04 per unit of risk. If you would invest 3,109 in COPT Defense Properties on September 14, 2024 and sell it today you would earn a total of 154.00 from holding COPT Defense Properties or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COPT Defense Properties vs. Zijin Mining Group
Performance |
| Timeline |
| COPT Defense Properties |
| Zijin Mining Group |
COPT Defense and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPT Defense and Zijin Mining
The main advantage of trading using opposite COPT Defense and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPT Defense 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.| COPT Defense vs. Zijin Mining Group | COPT Defense vs. Kaiser Aluminum | COPT Defense vs. Sanyo Special Steel | COPT Defense vs. Olympic Steel |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |